DIRECTIVES FOR PROJECT FORMULATION AND

MANAGEMENT IN DRDO (DPFM 2021)

2021

30 APRIL 2021

Directorate of Planning & Coordination

Defence Research and Development Organisation
DRDO Bhawan, Rajaji Marg
New Delhi-110011
 Directives for Project Formulation and Management in DRDO (DPFM 2021)

Directorate of Planning & Coordination (DP&C), DRDO HQ, Rajaji Marg, New Delhi - 110011 i
 Directives for Project Formulation and Management in DRDO (DPFM 2021)

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 Directives for Project Formulation and Management in DRDO (DPFM 2021)

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 Directives for Project Formulation and Management in DRDO (DPFM 2021)

PREFACE
A structured approach is followed by DRDO to bridge the knowledge gaps, enhance
technological capabilities, develop contemporary test methodologies, establish advanced test
facilities and infrastructure and develop systems based on the requirements of Services Head
Quarters (SHQs) or on its own assessment of requirements for the future. These activities are
carried out in the form of Projects / Programmes.
DPFM 2021 will further streamline the project sanction process and effectively
implement the standardized monitoring and review structure in DRDO projects.
DPFM2021 will be applicable for all Projects/Programmes of DRDO and ADA.
Projects routed through Empowered Committee/ Political Committee (EC/PC) will not be in
the scope of this document.
Salient features of DPFM 2021 are given below :-
(a) During Annual Selection of Projects exercise, for every non-plan project being
considered (if User recommendation does not exist), a Plan project may be
dropped.
(b) Technology Demonstration (TD) projects will be sub-categorized as
Technology Level TD projects i.e TD(T) and Systems level TD projects i.e
TD(S). Similarly, Science & Technology (S&T) projects have been categorized
as ‘Applied S&Ti.e. S&T(A)’ and ‘Basic S&T i.e. S&T(B)’.Sub category of
project will be used for allotment of project number. However for cost
estimation common budget headswill be used for TD(T) & TD(S) projects and
similarlyfor S&T(A) & S&T(B) projects.
(c) Pre-requisites for taking up a project and the expected outcome has been
qualified.

(d) Activities costing less than ₹ 5.0 Cr. shall not be considered as projects.

(e) Provision for sanction of special projects by Standing Committee has

beenincorporated.
(f) Projects and sub-projects are to be treated at par for execution.
(g) For objective assessment of project progress during execution stages, a Progress
Reporting Frame Work,Six-monthly Technical Milestones and Online
Monitoring of Projects with associated financial outlays have been introduced.

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(h) Number of design iterations at component /sub-system level stages and at

overall system level and associated additional time requirements will be
stated in TD and MM projects as a risk assessment and contingency aspect to be
considered at project sanction and execution stages.
(i) Roles and responsibilities of project stakeholders within DRDO have been
introduced.
(j) DRDO will work on advanced and critical technologies. The same will be
certified by the Project Director and Lab Director while seeking project
sanction.
(k) Procedure for transfer of projects from one lab to another lab has been
introduced. Similarly, procedure for change of category of projects without
changing the timelines and cost has also been introduced.
(l) The Project / Programme monitoring is aligned to the provisions of Defence
Acquisition Procedure 2020 (DAP 2020).
(m) Fast-tracking of pre-project activities concurrently with AON process.

Any amendment to DPFM 2021 shall be issued with the concurrence of Addl. FA
(R&D) and approval of Secretary, DD R&D. Exceptions, where DPFM 2021 procedures are
not applicable, should be submitted for approval of Secretary DDR&D along with Financial
Concurrence.
The applicable forms, formats, templates and checklists which are to be referred in
conjunction with this guideline document are being promulgated as ‘Handbook of
Supplementary Procedures to DPFM 2021. For ease of cross-reference, Handbook Contents
are denoted as DRDO.DPFM.GL.SN for Supplementary Guidelines; DRDO.DPFM.FF.SN
for Forms, Formats and Templates; DRDO.DPFM.CL.SN for Checklists; and
DRDO.DPFM.AL.SN for Abbreviation Lists.These contents are indicative and may be
revised and issued by Directorate of Planning and Coordination (DP&C) with the approval of
DG (R&M) on requirement basis.

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 Directives for Project Formulation and Management in DRDO (DPFM 2021)

ACKNOWLEDGEMENT

The Directives for Project Formulation and Management in DRDO (DPFM

2021) have been finalized after several deliberations and discussions.
Valuable inputs and comments provided by Project Directors, Lab Directors,
Directors (PM), Cluster DGs, Director Finance and Material Management (DFMM), Director
Interaction with Services for Business (DISB), Integrated Financial Advisors (R&D) and
Additional Financial Advisor (R&D) have been incorporated.
Theteam at DP&C,led byShriShobhNath Yadava, Scientist ‘F’ and comprising
membersShri Yogesh Shakya, Scientist ‘E’, Smt. Mendu Shree Lakshmi, Scientist ‘E’, Shri
Sanjeev Kumar, Scientist ‘E’ and Shri Lalit Mohan, Scientist ‘D’ have worked hard with full
dedication to ensure the methodological compilation of the guidelines. Contribution made by
the team is exemplary.
Directions and support of Mrs. Nabanita R Krishnan, DG (R&M) and Shri Prateek
Kishore, Director TBRL, (previous Directors DP&C) for initiating and bringing this DPFM
2021 to this shape is well appreciated.
Acknowledgement is alsoextended to Director DESIDOC and team for printing this
document.

New Delhi Director Planning & Coordination

Date :30 April 2021 DRDO HQ, New Delhi

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CONTENTS
CHAPTER 1 INTRODUCTION Page No
1.1 Background 1

1.2 Criteria for Classification of Project and Programme 2

1.3 Technology Readiness Levels (TRLs), Technology Readiness

Assessment (TRA) and Project Readiness Indices (PRIs) 2

1.4 Project/ Programme Categories, Pre-requisites and Expected Outcome 7
1.5 Collaborations Under Projects 14

1.6 System Analysis of Projects 14

CHAPTER 2 PRE- PROJECT ACTIVITIES

2.1 Annual Selection of Projects 15
2.2 Draft Project Proposal 16

2.3 Risk Analysis and Risk Management Plan 16

2.4 Project Peer Review 17
2.5 Preliminary Design Review 18

2.6 Acceptance of Necessity (AoN) by DMC 19

2.7 Procurement Plan and Demand Approvals 19

2.8 Cost Estimation 20

2.9 Scheduling and Project Duration Estimation 25

2.10 Nomination / Selection of LSI / DcPP/ PA 25
2.11 Testing Plan / Test Infrastructure/ Test Methodology 25

2.12 Detailed Project Proposal / Statement of Case (SoC) 26

CHAPTER 3 PROJECT SANCTION

3.1 Overview 28

3.2 Competent Financial Authorities (CFAs) for Sanction of Project/Programme 28

3.3 Submission of Project Proposals 28
3.4 Sanction of Special Projects by Standing Committee 31

3.5 Project SanctionLetterand Unique Sanction Code 31

3.6 Submission of ProjectProposals for CCS Sanction 32
3.7 Sub-Project Sanction 32

CHAPTER 4 PROJECT EXECUTION

4.1 Appointment of Project/ Programme Directors and Project Team 34

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4.2 Project Realisation Plan and Responsibility Matrix 35

4.3 Sub-Projects 35
4.4 Award of Work Packages, Consultancy Contracts 35
4.5 Detailed Design, Design Reviews and Configuration Finalization 36
4.6 Design, Development and Fabrication Contracts 36

4.7 ToT to LSI/DcPP/ PA 37

4.8 Realisation of Systems and Integration 37
4.9 Test and Evaluation 37

4.10 Annual Audited Statement of Expenditure 38

4.11 Transfer of a Project from Nodal Lab to another Lab 38
4.12 Change of Category of Project 39

CHAPTER 5 PROJECT MONITORING AND REVIEW

5.1 Reporting of Milestone Status and Achievements 40
5.2 Online Monitoring 42

5.3 Coordinating Reviews 42

5.4 Project Monitoring and Review 42
5.5 Briefing Papers for Review Meetings and Minutes of Meetings 43

5.6 Agenda for Three -Tier Monitoring Committees 44

5.7 Composition of Project Monitoring and Review Committees 46

CHAPTER 6 PROJECT SCOPE, DURATION AND COST REVISION

6.1 Scope Revision, PDC Extension, Re-Allocation of Funds & Cost Revision 49
6.2 Sub-Projects Revision 50

CHAPTER 7 PROJECT/ PROGRAMME COMPLETION AND CLOSURE

7.1 Project Closure Categories 51

7.2 Recommendation of Highest Monitoring Body 52

7.3 Project Success Evaluation 52
7.4 Technical Closure Report 52

7.5 Administrative Closure Report 53

7.6 Competent Authority for Administrative Closure of a Project/ Programme 54
7.7 Way Forward after Project Closure 54

ABBREVIATIONS 56

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CHAPTER 1
INTRODUCTION
1.1 BACKGROUND
1.1.1 A Project/Programme essentially consists of well-defined objectives which are
planned to be achieved under given time and cost constraints. Research and Development
(R&D) requires exploration of existing knowledge and skills along with developing new
knowledgeand skill-setto bridge gaps required to develop a
product/technology/process/system not developed hitherto indigenously. Accordingly,
uncertainties in the final outcome become an integral part of the R&D processes and its
management. A R&D Project/Programme would plan to achieve pre-defined objectives, with
an anticipation of bridging the knowledge gaps within the project period, by defining the
milestones and also identifying some of the risks involved and its planned mitigation.
1.1.2 R&D project management is a typical process and should not be compared with
conventional projects where uncertainties are minimal. Certain flexibilities need to be
accorded to R&D projects where the development quotient is high in meeting all the
objectives defined with associated risks. The knowledge and experience gained during any
project is a capital asset and is useful in many other subsequent projects /activities. Hence,
not meeting the objectives verbatim of such projects is not considered as a failure of the
project.
1.1.3 The basis of undertaking Projects/Programmes by DRDO is the problem statement
or the requirements mentioned in Plan Documents of Services/MoD/DRDO. Long Term
Integrated Perspective Plan (LTIPP) of HQ Integrated Defence Services (IDS), 5-Year Plan
and Annual Acquisition Plans of respective Services are used as guideline documents.
Internal documents of DRDO like DRDO Vision Document (D-ViDOC), Roadmap of DRDO
(D-RdMAP), DRDO Five Year Plan (D-FYP) and DRDO Long Term Technology
Perspective Plan (D-LTTPP) will also be referred. These projects shall be classified as ‘Plan
Projects’. In specific cases, Projects / Programmes shall be undertaken either to meet
immediate requirements of Armed Forces or to develop indigenous capabilities in emerging
technology areas not fully captured in Plan documents. Such projects will be referred as
‘non-plan projects’.

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1.2 CRITERIA FOR CLASSIFICATION OF PROJECT AND PROGRAMME

1.2.1 Programme and Project are similar in type and scope of activities, but differing on
the scale of execution, cost, timeline and level of involvement of stakeholders. Following
guidelines will be adopted for classifying Programmes and Projects for execution purposes in
DRDO:
1.2.2 Programme:All proposals in the delegated financial power of CCS shall be
classified as Programmes. Furthermore, all such proposals which require multiple projects at
different work centers (labs) may also be classified as Programmes with the concurrence of
Addl. FA(R&D) and approval of Secretary DDR&D.
1.2.3 Project: All proposals which have financial outlay upto the delegated financial
powers of Finance Minister and with minimum financial outlay requiring Acceptance-in-
Principle (AIP) by DRDO Management Council (DMC) as amended from time to time shall
be classified as Projects. The minimum financial limit for project requiring AIP and AoN by
DMC shall be notified by Directorate of P&C with the concurrence of Addl. FA and approval
of Secretary DD R&D.
1.2.4 Project / Programme shall be used interchangeably in the document with the
meaning restricted to as defined above.
1.2.5 A group of activities whose cumulative value is less than the minimum financial
outlay for AIP by DMC shall be classified as Tasks. AIP for Tasks shall be given by CCM.
Project number and Unit Code will not be assigned in all such cases. Expenditure will be
borne from Lab under Build-up.

1.3 TECHNOLOGY READINESS LEVELS (TRLs), TECHNOLOGY READINESS

ASSESSMENT (TRA) & PROJECT READINESS INDICES (PRIs)
1.3.1 The aim of Projects / Programmes would be to increase the technological capabilities
at its completion. Technology Readiness Levels (TRLs) have been used by NASA, US DoD
and European Agency(reference ‘Technology Readiness Assessment Guide’ on Best
Practices for Evaluating the Readiness of Technology for Use in Acquisition Programs and
Projects issued by the U.S. Government Accountability Office in January 2020). TRLs are
the most common measure for systematically communicating the readiness of new
technologies or new application of existing/ heritage technologies to be incorporated into a
system or program. They serve as a compendium of characteristics that describe increasing

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levels of technical maturity based on demonstrated (tested) capabilities. TRL is traditionally

measured on a scale of 1–10, with 10 being the highest. The expected TRLs, in the context
of DRDO are given in Table 1.
1.3.2 TRL enhancement should be monitored as a project is progressed through the
process called Technology Readiness Assessment (TRA). It is a systematic, evidence based
process which evaluates maturity of critical technologies vital to the performance of a larger
system. It is a measure to identify risks and formulate risk mitigation strategy.
1.3.3 In DRDO Projects / Programmes, a technology assessed and proved in a previous
project can be introduced at TRL 3 for current project. Same TRL of a legacy system will not
be carried forward if there is change in any one of the aspects such as changes in design
(including material and manufacturing process) and/or changes in operating environment
conditions etc.

Table 1: Technology Readiness Levels Adapted for DRDO

TRL DRDO QUALIFIERS SUPPORTING

INDICES DEFINITION DOCUMENTS
1 Basic principle  Scientific publication with  Scientific Publication/
and research probable concept / application. Research Reports

2 Basic  Scientific/Technical report  Feasibility Study

technologies with feasibility and potential Report
assessed and application.  Concept Design Report
technical  Literature study of world-wide
concept trends, identification of final
formulated development model, testing and
validation plan and possible
technical risk areas.

3 Experimental  Laboratory results showing  Preliminary Design

proof of validation of critical properties, Document (PDD) and
concept and studies and lab measurements to Preliminary Layout

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preliminary validate analytical predictions. Drawings

design  Preliminary Design Review  Report on similar
for components/sub-systems system developed with
completed. test details of
specifications achieved.

 System Definition
Document (SDD)

4 Technology  Configuration finalisation for  Identification of

validated in system / product specifications. LSI/DcPP/ PA for a
lab  Generation of System/Product TD(S)/MM Project.
environment Tree.  Detailed Design

 Detailed Design Review Document and Layout

completed. Drawings.

 Lab prototype realised.  Integration Layouts.

5 Technology  Components / Sub-systems  ATP document.

validated in manufactured as per Acceptance  Approved sub-system/
simulated Test Procedures (ATP). component design and
environment  Design validation for drawings for prototype
performance at component / sub- manufacture.
system level.  Approved integration
 Components/sub-systems Plan.
integrated in lab environment for  Component/Sub-system
functional assessment. Functional Test Reports.

 Quality Assurance Plan

for sub-system /
component.

6 System/ Sub-  Sub-systems/Systems  Qualification Test

system model manufactured as per Quality Certificates for
or prototype Assurance Plan (QAP) & components/ sub-systems.
demonstration accepted as per ATP.  Approved Interface
in simulated  Completion of Qualification Control Documents

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environment tests for components/sub-  Critical Design Review

systems from LSI / DcPP / PA. report of components/
 Critical Design Review and sub-system.
implementation of  Manufacturing
recommendations. Drawings of QAP and
 Readiness for Prototype Trials ATP cleared sub-systems/
in simulated environment. components.

 Prototype Trials Plans.

7 System  Realisation of prototype from  Prototype Trial Reports.

prototype LSI / DcPP / PA  PSQR Validation Trial
demonstration  Completion of Prototype definition document at
in relevant / Trials. system/ sub-system level.
simulated
 Prototype cleared for PSQR  Approved Technical
environment
Validation Trials. Documents

 Completion of Technical  Approval by Executive

Documentation Body

8 Actual system  Completion of PSQR  PSQR Validation Trial

completion Validation Trials on systems (for performance
and qualified manufactured by LSI/ DcPP/ PA evaluation) reports duly
through PSQR based on QA/ ATP, for vetted by the Trials Team.
validation performance requirements.
trials for  Completion of Technical
performance Documentation.
requirement
against Trial
Directive.

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9 Actual System  Completion of PSQR  Jointly vetted PSQR

operated over validation/ User Trials / Final Validation Trial reports.
the full range Acceptance Trials.  Approval by the highest
of operational Monitoring Body
conditions as
per PSQR
parameters
against Trial
Directive.
10 System in  System/sub-  Production order.
production/ system/components under
COTS production meeting the
performance requirements.

1.3.4 Project Readiness Indices (PRIs): Lowest of the TRLs of Sub-systems /

Components / Technologies envisaged under a project will be considered as the Project
Readiness Index. It is a single index which represents readiness level of the whole project at
any stage. It should be used as a reference during selection of new projects under a category.
PRIs for selection of projects under different categories are given in Table 2.

Table 2 : Project Readiness Indices (PRIs) and Project Categories

SN Project Category Minimum PRI at Minimum desirable

Project initiation PRI at Project
completion
1 Basic S&T Projects 1 2
2 Applied S&T Projects 1 2 to 3
Technology level Demonstration
3 2 6
Projects i.e TD (T) Projects
Systems level Technology
4 3 7
Demonstration i.e TD (S) Projects
5 Mission Mode (MM) Projects 6 8 to 9
6 User Trial (UT) Projects 7 9

Note: TRLs/ PRIs will not be applicable for PS, IF, LSP projects and RDR Works.

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1.3.5 The Project Director designate has the responsibility of carrying out self-
assessment of TRLs for each sub-system in the project based on Work / Product Breakdown
Structure. However, for an independent verification, TRA should be conducted at lab level by
Technology Council. The council will measure technology maturity on the TRL scale based
on qualifiers and supporting documents stated at Table 1. TRA report stating PRI will be
verified by Lab Technology Council and will be further vetted by Chairman,PRC/PDR (for
MM and TD(S) projects vetting will be done by Chairman PDR). TRLs will be progressed
during project execution phases as per the TRA Roadmap. The detailed methodology for
assessment of TRLs, PRI and TRA Roadmap during project execution are given at
DRDO.DPFM.GL.02 in Handbook of Supplementary Procedures to DPFM 2021.

1.4 PROJECT/ PROGRAMME CATEGORIES, PRE-REQUISITES AND

EXPECTED OUTCOME
DRDO undertakes projects under different categories aligned to the requirements.
The categories give an indication about the broad nature of activities and also to help DRDO
Management to allocate resources in a manner meeting the organisational goals. Different
categories of projects, its selection criterion, broad scope for each category of project and
expected outcome have been given in succeeding paragraph. Pre-requisites and expected
outcome of various project categories have been stated in the Pre-requisites and expected
outcome diagrams given at subsequent sections. A single or combination of pre-requisite/s
can be considered during project selection. A single or combination of
outcome/sisfeasible during project completion.
1.4.1 Science and Technology (S&T) Project:
1.4.1.1 S&T projects are undertaken for basic or applied research activities in
alignment with long term technology needs and for competence build-up in emerging
scientific and technological areas.Thus, S&T projects can be undertaken under the sub-
categories ‘Basic S&T’ or ‘Applied S&T’ depending on the nature of the project scope.
The scope could include ab-initio research, design studies and analysis, design and
development of working models / prototypes, modelling and simulation and tests in
controlled environment. Bridging the knowledge gap in partnership with academia on work-
share basis can be an important feature. The objectives of such projects are expected to be
optimistic given the current knowledge base and the outcomes are also expected to have
widely varying results. Partial achievement of the project objectives or not meeting few of the

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pre-defined objectives would not be considered failure, since uncertainties will be high under
these projects. It is suggested that labs should aim to have 10% of their projects by numbers
in this category.However basic R&D labs will have a much greater percentage of S&T
projects in this category.The referencediagram with pre-requisites and expected outcome
for S&T category of projects is given in Fig. 1.

D-ViDOC/ D-RdMAP/ Technology Demonstration Project

D-FYP/ D-LTTPP S & T Project
Technology for future use

Technology Forecast/ (Basic & Technology not matured at this

Emerging Technology applied S&T) stage for required performance

Academic Problem- Technology

maturity in association with Academia

Fig.1: Pre-requisites and expected outcome of S&T Projects.

1.4.1.2 The expected outcome of an S&T project would be study report establishing the
feasibility of converting some or all of its objectives in technologies, suggesting the probable
applications of the knowledge / technology. The minimum TRL at the completion of S&T
project should be 2-3.
1.4.1.3 In case, some of the objectives of the project have not been achieved or met
partially, a follow-on study project in S&T category can be taken up by the lab in
collaboration with academia to bridge the knowledge base. All such cases would not be
considered a shortfall in performance or failure of the project to achieve desired objectives.
Such projects will be stage closed as per the procedures at Chapter 7. Some of the study
results of these projects would be towards knowledge generation and competence build-up
and may not have an immediate application.

1.4.2 Technology Demonstration (TD) Project

1.4.2.1 Technology demonstration and maturity is the key for self-reliance in defence
equipment and systems. TD projects would be taken up to establish a technology or to
develop a product / process or to evolve a test methodology or to develop a system for
which the basic technologies are already developed or available ex-industry. TD projects
could be initiated as a follow-up action of S&T projects or based on D-ViDOC/ D-RdMAP/

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D-FYP/ D-LTTPP. These projects may also be taken up to meet Non-plan requirements of
Services or to develop competency in emerging technology areas. Academia could be
involved to handle specific problems. The scope of a TD project should include design and
development of prototypes, its testing and evaluation, analytically and experimentally
establish a product / process / test methodology.
1.4.2.2 TD projects can be further sub-categorised as Technology level TD projects i.e.
TD(T) and as System level TD projects i.e TD(S). The reference diagram for pre-
requisites and expected outcome of TD category of projects is given in Fig. 2.

D-ViDOC/D-RdMAP/ Matured Product/ Process/ Methodology

D-FYP/ D-LTTPP
Technology for future use
Technology Forecast/
Emerging Technology TD (T) Project Technology input for MM/TD(S)
Projects
S & T Project
Technology not matured at this
stage for required performance

TD (T)/ S & T Project as per

requirement - Technology maturity
in association with Academia

D-ViDOC/D-RdMAP/ Matured Product/ Process/ Methodology

D-FYP/ D-LTTPP (or) Technology for future use
Technology Forecast/ Nomination of LSI/DcPP/PA
Emerging Technology TD (S) Project Mission Mode Project
Non-plan requirements of Technology not matured at this
SHQ / PSQR stage for required performance
S & T/TD(T) Project
TD(T)/ S & T Project - Technology
maturity in association withAcademia

Fig. 2 : Pre-requisites and expected outcome of TD projects.

1.4.2.3 The TD (T) projects shall be undertaken for enhancement of technology levels for
realisation of a component/ system, such that the technology can be customised for
development of variants of the components/systems. Technology development for a product /
process / test methodology under a TD(T) project is expected to have higher uncertainties.
Therefore, shortfall in the pre-defined objectives or not meeting all the pre-defined objectives

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would not be considered as a failure of the project. At completion of TD (T) project, the
TRL should increase from 2 to 6 or higher.
1.4.2.4 Availability of Draft Provisional Staff Qualitative Requirement (PSQR) is
desirable to take up a system level TD project. Lead System Integrator (LSI)/ Development-
cum Production Partner (DcPP) / Production Agency (PA) maybe identified in the TD(S)
project along with other technical objectives. It is expected that all essential performance
parameters shall be met. Participation of Services Head Quarters (SHQ) reps in all system
level TD projects is desirable. At completion of TD (S) project, the TRL should increase
from 3 to 7or higher.
1.4.2.5 Specific test facilities and infrastructure required for validation of the technology
should be identified and created in a TD project.
1.4.2.6 A TD(S) project is expected to lead to Mission Mode (MM) projects, whereas, the
outcome of TD(T) projects, the products / technologies / processes may be used in
subsequent system level TD projects or as an input for MM projects. In case, a TD(T) project
does not meet all the objectives, it will be stage closed as per the procedures inChapter 7. A
follow-up TD or S&T project can be taken up to build the necessary technological
capabilities.

1.4.3 Mission Mode (MM) Project

1.4.3.1 Mission Mode projects should be undertaken where requirements have been
projected by the Services in terms of Operational Requirements (ORs) or PSQRs or
Minimum Order Quantity (MOQ) or Acceptance of Necessity (AoN) has been provided
by the SHQ.
1.4.3.2 Project proposals initiated by SHQs as per Chapter IV of DAP 2020 will be
undertaken by DRDO as MM Projects. The mandatory pre-project activities upto DMC AON
stage as stipulated for MM projects should be concurrently progressed and completed by the
Nodal Labs, such that, project sanction proposal could be immediately progressed upon
accord of AoN by DMC.
1.4.3.3 MM projects may also be taken up by the Labs to meet non-plan requirements of
Services or as a follow-up of TD(S) category projects with the concurrence of SHQs pending
AoN.
1.4.3.4 PDR should be completed before sanction of MM project. Lab/DISB should aim to
get the Trial Methodology from the Services. Partial funding from Services is also desirable.

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It is expected that major technology blocks are already available and demonstrated in similar
systems. Basic or applied research should not be undertaken in MM projects. The reference
diagram for pre-requisites and expected outcome of MM category of projects is given
inFig. 3.

TD(S) Project Limited Series Production Project

D-ViDOC/D-RdMAP/ Nomination of LSI/ DcPP/ PA
MM Project
D-FYP/ D-LTTPP Product Support
Non-Plan SHQ Acceptance-In-Principle by
requirements/AoN/
PSQR/SQR/Financial SHQ)/ Induction of System
Commitment

Fig.3: Pre-requisites and expected outcome of MM projects

1.4.3.5 MM projects should lead to readiness of systems as per the PSQR parameters so
that it can be changed to SQR leading to induction and production. MM projects would
envisage manufacture of specific number of deliverables required for demonstration of
system capability vis-à-vis PSQRs during validation trials. It is essential that the systems used
for PSQR validation trials should be produced by the LSI / DcPP / PA (if they are
involved)as this will reduce the trial cycle as per provisions of DAP 2020.Successful
completion of a MM project could lead to a Product Support Project (described at Para 1.4.5)
upon acceptance of the system by Services, and in some cases it could also lead to Limited
Series Production Project (described at Para 1.4.7). Since MM projects are SHQ intensive,
their participation at different stages of project is mandatory. A Joint Project Monitoring
Team (JPMT) of DRDO and SHQ would be constituted on case-to-case basis.
1.4.3.6 MM projects are to be taken up to demonstrate system level capability against SHQ
requirements. It is expected that minimum TRL should be 6 at the start of the project. The
TRL at the completion of MM project is expected to be 8/9. In case a COTS or imported sub-
system/ component is being considered for a MM project, indigenous development of the
sub-system/ component may be undertaken by the Labs through separate projects.

1.4.4 User Trial (UT) Project

1.4.4.1 UT Projects are undertaken to meet subsequent requirements of PSQR
Validation Trials for systems developed where AoN was not accorded at the time of
sanction of the project or LSI / PA has been identified after completion of the

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development phase. Number of systems required for PSQR Validation Trials may be catered
from the pre-cursor MM and TD(S) Projects also. The reference diagram for pre-requisites
and expected outcome for UT category of projects is given in Fig. 4.

TD (S) Project/ MM
AoN/ Induction of System
Project concluded at
Development Trials stage Limited Series Production Project
UT Project
LSI / PA identified post
Product Support
development stage

Fig. 4 : Pre-requisites and expected outcome of UT project.

1.4.4.2 Availability of PSQR and Trial Directives/ Methodology, Acceptance Test
Procedure (ATP), minimum quantity for induction, selection / nomination of LSI / DcPP / PA
and successful completion of development trials are pre-requisites for this category of
project. Trial report jointly vetted by DRDO and SHQ with Trial sentencing by the SHQ, and
acceptance of the system by the User shall be the outcome of the project. PS or LSP projects
may be undertaken as a follow-up action. The expected TRL after completion of UT
project is 9.
1.4.5 Product Support (PS) Project
1.4.5.1 PS projects may be undertaken to provide technical support for systems
which are inducted or are in production, but LSI / DcPP / PA were not selected during
the development stage. These projects can be taken up in parallel to on-going MM/TD
projects provided systems developed under those projects have been inducted. Duration
of PS projects should not exceed 3 years after which, these systems should be maintained /
upgraded as regular inducted systems by an identified partner for life cycle management.
Part funding from the SHQ is desirable. Cost of PS projects should be restricted to 30% of
the pre-cursor MM/TD project cost. TRL assessment is not applicable for PS
Projects.Thereference diagram for pre-requisites and expected outcome for PS category
of projects is given in Fig. 5.

TD Project Serviceability of System

PS Project
MM Project
Identified Partner for Life Cycle
UT Project Management

Fig. 5: Pre-requisites and expected outcome of PS project.

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1.4.6 Infrastructure and Facilities (IF) Project

1.4.6.1 IF projects are undertaken for setting up typical and advanced infrastructure
(including construction of technical facilities) and test facilities for validating the
technology/ system developed or proposed to be developed under ongoing/ future
projects and for evolving test methodologies and protocols. IF projects have to be a mix
of construction (civil works) and equipment to be procured and installed therein.
1.4.6.2 Commissioning of test equipment and facility is the expected outcome of the
project. TRL assessment is not applicableforIF Projects.

1.4.7 Limited Series Production (LSP) Project

1.4.7.1 LSP projects are undertaken as a follow-up project of TD/MM/UT projects
where the requirement is to produce limited quantity not viable for commercial
production or to establish production agency. LSP projects can be undertaken for those
systems which have already been accepted for induction. LSP projects would normally be
funded in full or in part by the Services. TRL assessment is not applicable for LSP projects.
Detailed GoI guidelines on LSP projects are hosted on DRONA DIITM portal. DPFM
guidelines for LSP projects are available at supplementary guideline DRDO.DPFM.GL.08.
1.4.7.2 Production of the required quantity or establishing production agency is the
expected outcome of the project. The reference diagram for pre-requisites and expected
outcome for LSP category of projects is given in Fig. 6.

TD(S) Project Production of Required Quantity

LSP Project
MM Project Establish Production Agency

UT Project

Fig. 6: Pre-requisites and expected outcome of LSP project.

1.4.8 REVENUE DEBT REMITTANCE (RDR) WORK

1.4.8.1 RDR Works can be undertaken at the request of external agencies (such as
OFBs, ADA, ISRO, BARC, DPSUs/PSUs, Central / State government Agencies and
Private Industries etc.) on the basis of their requirements. Project scope would include
consultancy services, development of prototypes for technology demonstration, manufacture
of limited number of prototypes for a developed system in the absence of ToT to a production
agency, and providing test support at DRDO labs etc.

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1.4.8.2 RDR Works are to be exclusively funded by the external Agency. Detailed RDR
Works guidelines for execution of RDR Works are available at supplementary guideline
DRDO.DPFM.GL.10. SOP for fund allocation and expenditure management is available on
DFMM DRONA portal. TRL assessment is not applicable for such projects.

1.5 COLLABORATIONS UNDER PROJECTS

1.5.1 Labs may collaborate within and outside DRDO to tap expertise for fulfilling
project objectives through following provisions.
1.5.2 Sub-Projects can be awarded by Nodal lab to participating DRDO Labs/Estts.
Sub-projects should preferably be indicated while processing the project for sanction.
1.5.3 Work Packages can be awarded through MoU by the nodal/participating lab to
constituents of other Govt. Departments such as Department of Atomic Energy (DAE),
Indian Space Research Organisation (ISRO), Department of Science and Technology (DST)
etc. Funds for the work package will be released to the Govt agencies by DFMM, DRDO
HQ. Procedures for work packages will be the same as sub-project procedures.
1.5.4 CARS and CAPSI: Labs may avail professional expertise through (i) Contract for
Acquisition of Research Services (CARS) from academic institutions (ii) Contract for
Acquisition of Professional Services with Institute (CAPSI)of Defence Scientists and
Technologists (IDST). CARS may be avoided in MM, UT, PS, IF and LSP projects.
1.5.5 Consultancy Contractswill be awarded for seeking professional expertise which
cannot be met through CARS and CAPSI.
1.5.6 Guidelines for sanction and execution of sub-projects and work packages are given
at relevant sections of relevant chapters whereas the guidelines issued by DFMM, DRDO HQ
shall be followed for sanctioning and execution of CARS,CAPSI and Consultancy contracts.

1.6 SYSTEM ANALYSIS OF PROJECTS

SystemAnalysis activity should be carried out for MM & TD projects. S&Tprojects
may also employ the system analysis activities in accessing technology development
requirements for the specific projects if required. System Analysis should be carried out to
assess the requirement of the Products/Systems/Technologies in the simulated war
scenarios.Detailed guidelines formulated bythe Directorate of Systems and Technology
Analysis (DSTA) as amended from time to time may be considered.

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CHAPTER 2
PRE-PROJECT ACTIVITIES
Pre-project activities are the foundation for the project during its sanction and execution
process. These activities use minimum resources but have maximum impact on the outcome
of the project.

2.1 ANNUAL SELECTION OF PROJECTS

 Roadmap of DRDO (D-RdMAP) & DRDO Five Year Plan(D-FYP) Document to be

considered for DRDO Technology & Systems Perspective Plan.

 D-RdMAP to have 2-year, 5-year and 10-year Plan for Initiating development of
Technologies, Systems and Infrastructure & Test Facilities.

 2/5 year Plan shall be used to derive Annual Plan by labs / Clusters.

 Approval of cluster Council is required for finalising the list of projects for annual
selection of projects (Annual Plan) for presentation in DMC for accord of Acceptance
-in -Principle (AIP) by DMC.

 Annual Plan (CCM approved) shall be presented in DMC before forthcoming

Financial Year and Acceptance-in-Principle (AIP) shall be accorded for shortlisted
projects by DMC.The validity of AIP for the projects approved during Annual
Selection of Projects shall be for the forthcoming FY

 Pre-project activities (PRC/PDR) to be completedforAIPgrantedprojects and

proposals will be presented in DMC individually for Acceptance-of-Necessity (AoN)
including detailed Objectives, Scope, Cost and Duration. DMC to also accord validity
of AoN.

 Review D-RdMAP every 2 years, update 5 and 10 years Plan based on technology
requirements at that time.

 Project based on requirements of Services may be taken up for sanction independent

of its listing in D-RdMAP. CCM to recommend, PDR to be completed then be
presented in DMC for AoN for processing for project sanction.

 There may also be situations when a project needs to be undertaken on an urgent

requirement basis. Such projects, if not a part of Annual Selection of project, may be
taken up with the recommendation of Cluster Council &AoN by DMC as special case.

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2.1.1 Review of Completed projects / Projects completed with partial success. All the
completed projects / projects completed with partial success during lastFinancial Year should
be presented to DMC (during the presentation for Annual selection of projects) highlighting
outcomes of technology maturity, future roadmap for use of these technologies/developed
systems/products/ processes which have not culminated into another project / product /
prototype / process / adopted for manufacturing (refer Pre-requisites and outcome of
Projects).

2.2 DRAFT PROJECT PROPOSAL

2.2.1 A Draft Project Proposalshould be prepared,incorporating details of feasibility
studies, project objectives, scope, preliminary work done, comprehensive technology scan in
related areas, plan for development and tests, identified risks in development. Additionally, it
may also include its mitigation plan and possible effect on completion schedule, requirement
of additional specialised infrastructure and test facilities, resource requirement in terms of
scientific and technical manpower and funds, estimated time and the current and expected
TRLs. Detailed guidelines for Draft Project Proposal are available at DRDO.DPFM.GL.01

2.3 RISK ANALYSIS AND RISK MANAGEMENT PLAN

2.3.1 Risk Mitigation Plan should be a top-down approach. The risk identification and its
mitigation plan together with the Product Breakdown Structure (PBS)/Work Breakdown
Structure (WBS) should be included in the Draft Project Proposal. It should be reviewed and
vetted by the Peer Review Committee. It should also be presented as part of PDR, CDR and
project reviews at every stage.
2.3.2 Risks in an R&D management project occurs primarily in areas given below(the list is
illustrative and not exhaustive):
(a) Technical Risk: Design iterations to meet the performance and operational
requirements, change of components due to obsolescence or due to design
requirements, changes in operating environment due to changed concept of
operations, limitations of manufacturing processes etc.
(b) Procurement Risk: Delays due to procedural issue related to procurement,
development contracts, non-performance of vendors, technology/ export denial.

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(c) Test & Evaluation Risk: Test requirements vis-à-vis availability of test facilities
and necessary infrastructure, availability of test methodology, additional test
requirements due to changed design/ operating conditions.

2.3.3 Risk Mitigation Plan broadly should involve the following steps -
(a) Identify the risk - to be drawn from the PBS/ WBS
Therisks can be identified through one or more of the following: Reviews & analysis,
SWOT analysis, brainstorming among experts, Delphi techniques, assumption
analysis, cause-and effect & influence diagrams, Monte Carlo simulations etc.
(b) Assess the probability of occurrence of the risk and impact on project duration,
cost and performance. This assessment should be based on past experiences and
qualitative judgement, ABC analysis etc.
(c) Prioritise risks - Based on Impact/Probability.
2.3.4 Plan and implement the risk mitigation strategy.
2.3.5 Track and monitor the risks throughout project cycle.
2.3.6 The projects may adopt any other suitable method for specific requirements.

2.4 PROJECT PEER REVIEW

2.4.1 All TD(T) and S&T projects shall be mandatorily peerreviewedby an expert
committeei.ePeerReviewCommittee(PRC) for assessment of viability and technical adequacy
of the proposal. For MM & TD(S) projects / programme, PDR should be conducted in lieu of
PRC.For all such MM / TD(S) projects where PRC is not applicable but TRA and PRI are
applicable, TRA and PRI will be reviewed by PDR Committee and vetted by Chairman
PDR Committee.Specific recommendations of PRC should be recorded for consideration/
implementation. Articulated recommendations (Minutes in accordance with Terms of
Reference) of the PRC, duly approved by the Chairman should be appended with the project
proposal.There should be a clear acceptance of PRC recommendations on file. PRC
recommendations that are not agreed to, needs to be highlighted in DMC during presentation
for AoN.
2.4.2 Competent authorities for constitution of PRC is given below in Table 3:

Table 3 : Competent Authority for Approving PRC Constitution

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PROJECT CFA COMPETENT AUTHORITY

Lab Director Lab Director in consultation with Director (PM) of O/o Cluster DG

Cluster DG Cluster DG

Secretary DDR&D and Secretary, Defence R&D

beyond

2.4.3 Broad Constitution of PRC should be as under:-

(a) Chairman (Eminent person preferably from outside DRDO)
(b) Two external experts (eminent domain experts from academic institutions/ R&D
institutions/ Industry)
(c) Two DRDO experts (preferably from other labs/HQ Dte)
(d) DP&C, DRDO HQ
(e) Director (PM) of cluster DG
(f) Chairman / Rep Technology Council Members to address TRL & PRI
values/analysis
(g) Representatives of participating labs (if applicable)
(h) Rep DISB / Rep DQRS (DRDO HQ) andRepSHQ (for QR based/SHQ AON
cases)
(i) Rep DSTA, DRDO HQ (if applicable)
(j) Project/ Programme Director designate (Member Secretary)
(k) Other members co-opted by the PRC Chairman on need basis.
Terms of references of PRC Committee and related detailed guidelines are given at
DRDO.DPFM.GL.03.

2.5 PRELIMINARY DESIGN REVIEW (PDR)

2.5.1 The competent authority for Constitution of PDR, Detailed Design Review (DDR)
and Critical Design Review (CDR) Committee Constitution isgiven in Table 4. Detailed
description of guidelines related to design reviews has been given under Chapter 4.

Table 4 : Competent Authority for approving PDR/ DDR/CDR constitution

Project CFA Competent Authority

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Lab Director Lab Director

Cluster DG Cluster DG

Secretary, Defence R&D and beyond Secretary, Defence R&D

2.5.2 The committee of PDR/DDR/CDR should comprise of the following members:

(a) Chairman (eminent technology expert preferably external to DRDO)

(b) Two external experts (eminent academicians with domain expertise)
(c) Director P&C or Rep. forMM & TD(S) projects (only PDR)
(d) Director ISB or Rep. for all User QR driven projects (only PDR)
(e) Two DRDO technical experts
(f) Representative from DSTA (if applicable, Only PDR)
(g) Rep SHQfor all User QR driven projects
(h) Director DQR&S (if CFA is beyond Cluster DG)
(i) Director SQR from O/o Cluster DG (if CFA is Cluster DGor Lab Director)
(j) Project Directors of sub-projects
(k) Project Director will be the Member Secretary of the committee
Note: Chairman may co-optany eminent person to participate in review process.

2.6 ACCEPTANCE-OF-NECESSITY (AON) BY DMC

2.6.1 PRC/PDR recommendations will be presented in DMC. PRC recommendations that
are not agreed to/agreed with qualification (if any) have to be highlighted during presentation
to DMC. DMC, if agreed, shall accord AON to project. In case of urgent requirements
projected by SHQ, DMC would approve taking up projects not listed in AIP for the
forthcoming year based on the recommendations of the Cluster Council.

2.7 PROCUREMENT PLAN & DEMAND APPROVALS

2.7.1 An overall procurement plan should be prepared, detailing all products, components
to be procured with their estimated timelines for different procedural actions, cost and source
of supply.
2.7.2 Demand approval can be sought along with the processing for project sanction as per
Procurement Manual 2020 as amended from time to time.

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2.7.3 Labs may initiate procurement actions for projects submitted for approvals/ PDC
extension/ cost enhancement as per Procurement Manual 2020 as amended from time to time.
2.7.4 The Procurement Plan will be reviewed by PMRC and EB and necessary corrective
actions, if any, may be recorded.

2.8 COST ESTIMATION

2.8.1 An R&D project is different from a traditional project on account of uncertainties
of conversion of knowledge into products/systems. Many components/sub-systems/
technologies would be attempted for the first time in the project. Cost of the bought-out or
commercially-off-the-shelf (COTS) items can be realistically assessed; however, the
assessment of development cost would be a challenge. Hence, professional judgement of cost
based on past experience of project team would be an integral part of the Cost Estimation.
2.8.2 Cost estimation should be supported by a clear statement of items/services to be
procured, quantities/scope of the same and basis for estimating the cost of those
items/services. The said basis could be the Last Purchase Price (LPP) or Budgetary Quote
(BQ) or Professional judgement. Scope of the Project / Objectives and deliverables should be
translated into modules/ systems/ activities, associated test equipment, software, works, etc.
and each further decomposed to its sub-system/component level, which should be costed.
Assumptions on which costing is based should be defined e.g.
(a) Basis of calculation of numbers/spares of modules/systems/sub-systems taken
for costing.
(b) Specifications frozen or accepted by the appropriate authority, peer-reviewed.
(c) Methodology of implementing the project as accepted/proposed.
2.8.3 The general principle of product costing should apply to the costing of project too.
Every estimated cost should have a basis/a supporting data in the form of one of the
following:
(a) Annual EscalationandForeign Exchange Rate Variation (FERV)may be
applied on LPP. Percentage of escalation on the above per year should be taken
into account. For example, Previous Purchase Price/Supply Order (SO)/Purchase
Order (PO) either from the same Lab/ Cluster/ any other Govt. agency normalized
to the present day estimated cost by including a 2% escalation per year for
imported items and 3% escalation per year for indigenous items.

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(b) And/or Internal Cost Estimationbased on Experience. Especially in case of

sub-systems for which components/Line Replaceable Units (LRUs) are known to
the Project/Lab. Internal estimation is particularly relevant in cases of
customization, development of hardware and software.
(c) If a previous cost is available (old PO for same or similar item) and
modification is required, then percentage of work to be done should be indicated to
give an idea of proportionate additional cost over the non-recurring engineering
(NRE) cost of the referral order.
(d) If new development is required, then Bill of Material (BOM) and
Development / NRE Cost break-up is required. That is assessed LRUs/components
with approximate numbers and cost + estimated work (skilled members + unskilled
members with prevailing man hour rates taken for cost estimation).
(e) Completely new tasks/jobs can be supported with Budgetary Quote (BQ)/or
Expert Inputs. Only one BQ shall be considered adequate at this stage. BQs have
to be discounted by minimum10% while including in the estimates.
(f) Reserve stocks of critical components for system level TD (S) projects and
MM projects may be created to support production during initial phases. It may be
considered as a risk mitigation strategy and should be highlighted with detailed
justification and costing. However, the cumulative cost of reserve stocks should
not exceed 5% of the total project cost.As provided in PM2020, such reserve
stock pile may be procured after clearly indicating to the CFA that it is a stock pile.
(g) In the case of major equipment and high value stores the justification for
procuring them and not opting for hiring or outsourcing as a services, should be
clearly brought out.
(h) In certain cases where estimation of quantity may not be practically feasible, a
bench- mark percentage of project cost/revenue expenditure could be considered.
2.8.4 Overall estimated cost including taxes and duties shall be the basis for determining
project CFA. AIP andAoN of DMC will be on indicative cost estimation. However, the cost
estimated by Cost Estimation Committee (CEC) will be considered while processingproject
sanction case file. A CEC shall be constituted by Competent Authorities as given in Table 5.

Table 5: CEC Composition and Approving Authority

Project Approving Chairman Technical Finance Member

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CFA Authority Expert Member Secretary

Lab Lab Nodal Lab Dir (Finance)

Director Director Scientist ’G’ / ‘H’ Internal to / Sr. Dy. IFA
(non-member of Cluster / Dy. IFA
Cluster DG Cluster DG Project
project) (R&D)
Director
Secretary Designate
DDR&D Internal to IFA(R&D)
Cluster DG Scientist ’H’
and Cluster Cluster
beyond

Note : - Constituting authority/ Chairman may co-opt members as necessary

2.8.5 A detailed cost estimation report shall be prepared by the lab including the detailed
cost estimation sheets supported bydocuments like previous Purchase Orders (POs) / Supply
Orders (SOs), internal estimations, POs from other labs, BQs etc., professional judgment
indexed as per the module /activity /sub-system matrix for review by the CEC. In cases,
where it is proposed to seek demand approvals along with the project sanction; the same may
specifically be indicated to the CEC. The list of proposed procurements / demands have to be
appended to the project cost estimates for due scrutiny by the CEC. The Spread Sheet format
for Cost Estimation to be used is given in DRDO.DPFM.FF.01 in Handbook of
Supplementary Procedure to DPFM 2021.
2.8.6 The CEC report, duly incorporating recommendations and vetted by all members
shall be a part of the Statement of Case of the Project. Overall cost estimate approved by
CEC should be incorporated in the SoC under appropriate budget heads in the cost break-up
tables for various project categories given at Table Nos. 6 and 7.The signed Cost Estimation
sheets may be appended to the SOC of the project.
2.8.7 The bill of Materials (BOM) and activities in the project cost estimation is as
envisaged during project Formulation. Given the inherent uncertainties of R&D projects,
these are to be considered indicative and variation in BOM items and activities can arise
during project execution and should not hold up procurement action.
2.8.8 Basis for considering a cost item under a particular budget head is thegoverning
Controller General of Defence Accounts (CGDA) correction slip no 20/2018 issued vide
CGDA note No A/B/I/13626/XXXI/32 dated 04 Jun 2018. The approved estimates and

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support documents should be uploaded by nodal and participating labs on the Cost
Estimation Module software available on DRONA.
2.8.9 For all SHQ initiated design and development projects as per provision of DAP
2020, as amended from time to time, which will be undertaken as MM projects, the
SHQwould seek the estimated product cost through DISB. The product cost should be
computed by the project team and vetted by the Director (Cost) in the office of Addl. FA
(R&D). For past cases of Design & Development by DRDO, where product cost is sought by
SHQ for AON , the cost vetting would be done by Director (Cost). All such cases of cost
vetting would be processed through DISB.
2.8.10 A Head wise summary for cost Estimation is given in Table 6 & 7. Regardless of
CFA, as per classification code and correction slip No.20/2018; MM, TD, UT & IF projects
will be booked entirely to Capital.

Table 6: Cost Break-up Table for MM, TD, UT & IF projects

(in ₹ Cr.)
Major Head 4076 – Capital Nodal Participating
Total
Minor Head Sub Major Head – 05 Lab Lab, if any
(FE)
Heads of Expenditure Total (FE) Total (FE)
Transportation (Movement of Stores)
Equipment/Stores
CARS/CAPSI
Consultancy Contracts
Job Work/Contracts/Technical
052
Services
(Code Head-
Hiring of Transport
929/25)*
Fuel/Oil/Lubricants for Project
Vehicles
Contingency & Miscellaneous
Plant & Machinery
Project related Vehicles
111 Works
Total

*Total project expenditure related to MM, TD, IF and UT projects including equipment,
hardware, consultancy, project related contingency, purchase/hiring of transport, freight,

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contracts for “Acquisition of Research Services (CARS)” under the project etc will be
compiled to this head.

Table 7: Cost Break-up Table for S&T & PS projects

(in ₹ Cr.)
Participating
Major Head 2080 - Revenue Nodal Lab
Minor Head Lab, if any Total (FE)
Heads of Expenditure Total (FE) Total (FE)
Transportation (Movement of
105
Stores)
Equipment/Stores
CARS
CAPSI
110 Consultancy Contracts
(Code Head- Job Work/Contracts/Hiring of
856/01)** Technical Services
Hiring of Transport,
Fuel/Oil/Lubricants for Project
Vehicles
Contingency & Miscellaneous
111 Works
Total (Revenue)
Major Head 4076 - Capital

052 Plant & Machinery

(Code Head- Project related Vehicles
929/24)*** Works

Total (Capital)
Grand Total (Revenue & Capital)

**Expenditure under Product Support (PS) and Science & Technology (S&T) on Project,
Hardware on the basis of items less than ₹ 10 Lakhs and with less than 7 year expected life

will be compile to this Head, Consultancy, Transport, Freight, CARS and other Project
related contingencies which do not create tangible assets related to Science & Technology
(S&T) and Product Support (PS) Projects.

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***Cost of any upgrades/ improvements in the existing product and creation of permanent
infrastructure (such as testing facilities) for PS projects; and all expenditures resulting in
creation of tangible assets such as testing equipment, testing infrastructure, permanent
facilities such as ranges/ buildings etc, which remain after project closure, for S&T projects.

2.9 SCHEDULING AND PROJECT DURATION ESTIMATION

2.9.1 Project schedule and overall project duration are estimated for the objectives set-in
and the identified scope. It should be drawn using a standard project scheduling tool /
software. Experience of time taken in similar activities and professional judgement should be
factored to estimate the project duration.
2.9.2 In a R&D project, design iterations are in-built into the process. Design iteration
cycle can vary from case-to-case. Number of design iterations considered to arrive at the
project duration should be documented. Complex technology areas, development of which
may have a bearing on the project duration, should be highlighted.

2.10 NOMINATION / SELECTION OF LSI /DcPP /PA

2.10.1 Selection / Nomination of LSI/DcPP/PA is required to develop the industry partner
for manufacturing, testing and life-cycle management of products/systems. Preparatory
activities for the nomination of a LSI/DcPP/PA may be initiated during pre-project sanction
stages wherever the commensurate details are available. The process for nomination/selection
of LSI/DcPP/PA shall be governed by DISB guidelines DISB/DPP/27656/P-1/Para-72 dated
15 Mar 2019 as amended from time-to-time.

2.11 TESTING PLAN /TEST INFRASTRUCTURE/ TEST METHODOLOGY

2.11.1 A first level of test plan including time and cost estimations should be evolved. It
should contain assessment of existing facilities and its suitability to meet the test
requirements proposed in the projects. Project proposal must include tests required, test
equipment/facilities required and its availability, test methodologies to meet the performance
as envisaged in the project. The project proposal should document whether the requirement
test facilities are available or being created.A project may be taken only if the required test
facilities are either available or being created as part of the current project / build up. In case
such facilities are not available with DRDO, a long term Contract / Inter Govt Agreement

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(IGA)/ Memorandum of Understanding (MOU) with agencies or a plan / way ahead mutually
agreed by DRDO and User for testing will be considered for sanction of project.

2.12 DETAILED PROJECT PROPOSAL/ STATEMENT OF CASE (SoC)

2.12.1 The Draft Project Proposal and Cost Estimation Report should be concurrently
detailed by the project team duly incorporating DMC and PRC/PDR recommendations,
combining it intoa Detailed Project Proposal / Statement of Case (SoC) as per the
Supplementary Guidelines at DRDO.DPFM.GL.04. It should contain a detailed project
execution plan and procurement plan.
2.12.2 Statement of Case (SoC) should be prepared as per the format at
DRDO.DPFM.FF.04. Overall project cost should be provided under appropriate budget heads
as per the Costbreak-up templates provided in the SoCformat. Deliverables of the project
should be specified. The proposal should also contain the number of design iterations
required at the component/ sub-system level in a TD(T) project and number of design
iterations required at the overall system / project level in TD(S) and MM projects. Expected
time penalties should be mentioned with each iteration.
2.12.3 Six-monthly technical milestones with linked financial outlay shall be worked
out by the Project Team and integrated in the SoC in the format given at Table 8. Due care
should be exercised in identifying the milestones as the project progress shall be monitored
based on these.

Table 8 : Six-monthly Technical Milestones with Linked Financial outlay Forecasts

S. No Milestones Time Financial Outlay

(Months)
(₹ Cr.)

Total

2.12.4 DRDO will work on advanced and critical technologies .The same will be certified
by the Project Director and Lab Director while seeking project sanction. The list of sub-
systems / technologies, issued from time to time by DG(PC&SI)/ DISB, to be developed

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exclusively by Industry would be considered as bought out/ Build to Specification (BTS)

items and shall be detailed in the project proposal.
2.12.5 Sub-project and Work Packages Proposals (if any) should be concurrently
expedited by the Nodal lab in coordination with the participating labs/ other agencies.
Category of sub- project shall be the same as the main project. Probable Date of Completion
(PDC) of Sub-Project should be at least 3 months prior to that of the main project. The sub-
project/ work package proposals will be made as per the specimen format for new project
SoC at DRDO.DPFM.FF.04. The participating labs along with their sub-projects have to be
associated from the Draft Project Proposal stage so that they can assess the technical
challenges and work load vis-à-vis their own project commitments, at the inception stage.
2.12.6 Labs should identify the Project Team in the SoC and should also confirm that
undertaking a new project would not affect any of the on-going activities directly or
indirectly.

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CHAPTER 3
PROJECT SANCTION
3.1 OVERVIEW
3.1.1 Project sanction is a physical process of consolidating all approvals-in-principle
dovetailed with the procedural requirements authorizing the expenditure of public fund for
given objectives. Necessity of prudence and clarity of purpose supported by necessary
documents should be followed. The project proposal should be prepared as per the DPFM
2021 guidelines and other statutory and regulatory documents issued from time to time.
3.1.2 Detailed project proposal should be moved by Nodal Lab for sanction within the
validity of AoN by DMC.

3.2 COMPETENT FINANCIAL AUTHORITIES (CFAs) FOR SANCTION OF

PROJECTS/ PROGRAMMES
3.2.1 The Delegation of Financial Powers (DFP) within Dept. of Defence R&D are
governed by ‘Schedule of Financial Powers’ issued by DFMM vide
DRDO/DFMM/PL/83226/M/01/1976/D(R&D) dated 18 Dec 2019 as amended from time to
time.
3.2.2 Financial powers to CFAs beyond Secretary DD R&D i.e Hon’ble Raksha Mantri,
Hon’ble Finance Minister and Cabinet Committee on Security (CCS) are as per MoD ID no.
14(23)/2003/IFDP II dated 30 July 2010 as amended from time to time.

3.3 SUBMISSION OF PROJECT PROPOSALS

3.3.1 A case file with title/ project code name and security classification (Top Secret/
Secret/ Confidential/ Restricted / Unclassified) with following essential documents should be
processed for project sanction.
(a) AoN accorded by DMC and PRC/PDR recommendations (MoM copies/
extracts).
(b) Cost Estimation Committee report duly vetted by CEC.
(c) Draft PSQR/SHQ AON and PDR document (for MM and TD(S) category
Projects).

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(d) Detailed Project Proposal and SoC containing details of sub-heads of sub-
projects/ work package proposals/ CARS/CAPSI requirements, stakeholder
responsibilities,project timelines / schedule, Six monthly technical Milestones
with financial outlay, Risks identified and mitigation plan, Key Performance
Indicators and Deliverables etc.
(e) Modality for identification of LSI/ DcPP/PAs (for all MM, UT & TD(S)
projects).
(f) Procurement plan and actions initiated (mandatory for MM projects).
(g) List for procurement items for demand approval by respective CFA with
concurrence of Designated Finance Authority.
(h) Sub-Project SoCs.
(i) Draft Govt. Letter (DGL) conveying project sanction (DRDO.DPFM.FF.06)
with Project No (DRDO.DPFM.GL.05). Lab code names to be incorporated in
project numbers are listed at DRDO.DPFM.AL.02. Unique sanction code
should be provided in the DGL as per DFMM guideline no.
DBFA/FA/83301/M/01 dated 31 Mar 2014, as amended from time to time.
3.3.2 Routing of case file for approval of CFA by the designated offices shall be as per
Table 9 . Checklist at DRDO.DPFM.CL.01 may be referred before submitting the proposal.

Table 9 : Project Sanction File Routing and Issue of Sanction Letter

CFA Concurrence Proposed Routing of Files

Level as stated
in latest DFP
Without Internal arrangement by Lab Director
consultation of
Director of Finance
Labs/Estts. Project Director → Dy IFA / DFA (R&D) → Lab/Estt.
Dy. IFA/ DFA Director for Sanction → Officer designated by lab
Director for issue of Sanction letter

Lab Dir→ Dir (PM) of O/o Cluster DG → IFA (R&D)

Cluster DG IFA (R&D) → Cluster DG for sanction→ Dir (PM) of Cluster DG
for issue of Sanction letter

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Lab Dir → Dir (PM) of O/o Cluster DG → IFA (R&D)

Secretary → Cluster DG→ DP&C → DFMM → DG (R&M) →
Defence Addl. FA (R&D) Addl. FA(R&D) → Secretary DD R&D for sanction →
(R&D) DP&C for processing of Govt. Sanction letter →
US(R&D) for issue of Sanction letter

Lab Dir → Dir (PM) of O/o Cluster DG →

IFA(R&D)→ Cluster DG→ DP&C → DFMM → DG
Raksha FA(DS) /
(R&M) → Addl. FA(R&D) → Secretary DD R&D →
Mantri SecretaryDefence
Secretary Def (Finance) → Hon’ble Raksha Mantri for
(RM) (Finance)
Sanction → DP&C for processing of Govt. Sanction
letter → US (R&D) for issue of Sanction letter

Lab Dir → Dir (PM) of O/o Cluster DG → IFA (R&D)

→ Cluster DG→ DP&C → DFMM → DG (R&M) →
Addl. FA(R&D) → Secretary DD R&D → Secretary
Finance Minister (FM) Defence (Finance) → Hon’ble Raksha Mantri→
Hon’ble Finance Minister for Sanction→ DP&C for
processing of Govt. Sanction letter→ US (R&D) for
issue of Sanction letter

Lab Dir→ Dir (PM) of O/o Cluster DG → IFA (R&D)

→ Cluster DG→ DP&C → DFMM → DG (R&M) →
Addl. FA (R&D) → Secretary DD R&D → Secretary
Cabinet Committee on Security
Defence (Finance) → Hon’ble Raksha Mantri →
(CCS)
Hon’ble Finance Minister → CCS for Sanction→
DP&C for processing of Govt. Sanction letter→ US
(R&D) for issue of Sanction letter

3.3.3 For projects beyond Cluster DG powers, DP&C will arrange for issue of sanction
letter. Project proposal file and other documents will be sent back to cluster DG office,
thereafter. Office of cluster DG will maintain Lab-wise ‘Projects Master Control Register’ for
their records regarding Project Number.

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3.3.4 EXAMINATION OF PROJECT PROPOSAL: ROLES & TIMELINES

Before sanctioning any DRDO project by the Competent Financial Authority, it
has to be examined at various levels. Indicated timeline and Roles of sanctioning Authority is
given in Handbook to DPFM under DRDO.DPFM.GL.06.

3.4 SANCTION OF SPECIAL PROJECTS BY STANDING COMMITTEE

Sanction of certain classified special projects(cost upto, Secretary DD R&D as
CFA of project), which should be executed on “need-to-know basis” may be processed on
file and will be sanctioned by a Standing Committee comprisingof cluster DG, Addl. FA
(R&D) and Secretary DD R&D. Lab Director would initiate the case for grant of special
project status before moving the Project Proposal. Approval for the same shall be accorded
by Secretary DD R&D based on recommendations of Cluster DG and concurrence by
Additional FA (R&D). Sanction letter shall be processed by DP&C, DRDO HQ in all such
projects(cost upto, Secretary DD R&D as CFA of project).

3.5 PROJECT SANCTIONLETTERAND UNIQUE SANCTION CODE

3.5.1 Project sanction letter shall be issued as per following authorization.

Table 10: Project Sanction Letter Issuing Authority

Project CFA Vetting Authority and UO Letter Issuing Authority

Number Allotment
Director (Finance) / Sr. Dy. IFA / Officer nominated by Lab
Lab Director
Dy. IFA Director vide DO Part I

Cluster DG Cluster IFA (R&D) Director (PM), O/o Cluster DG

Beyond Cluster DG O/o Addl. FA (R&D) US (R&D)

3.5.2 All project sanction letters must also have a “Unique Sanction Code”, the details
of which have already been circulated separately by DFMM (Maintenance of a control
register containing details of Unique Sanction Code for each financial sanction issued by the
individual CFA will be mandatory). Project sanction letter will be considered
incomplete/invalid, if Project Number and Unique Sanction Code have not been mentioned in
the letter.

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3.6 SUBMISSION OF PROJECT PROPOSALS FOR CCS SANCTION

3.6.1 Format as specified by Cabinet Secretariat (DRDO.DPFM.FF.05), as amended
from time to time, shall be followed. The relevant guidelines are available at website
www.cabsec.nic.in.

3.7 SUB-PROJECT SANCTION

3.7.1 Sub-project to different participating labs should preferably be identified during
the AoN stage. DMC may add or modify the list of participating labs and their scope. In-
principle approval of respective Cluster Council Meetings (CCM) would be sought by the
sub-project proposing lab, if the nodal and sub-project holder labs are from different
technology clusters. SoC for sub-project should be forwarded by the concerned lab Director
to the nodal lab. Cost estimation for the sub-projects shall be done along with the main
project. Designated IFA of the technology cluster of nodal lab shall concur the composite
project proposal including all sub-projects. Labs holding sub-project cannot allot further
sub-projects, however CARS / CAPSI may be sanctioned. There is no distinction between
‘Project’ and ‘Sub-Project’ for work execution and PDs may be appointed for sub
projects.
3.7.2 Sub-projects detailed in the main project SoC, while seeking original sanction,
shall be sanctioned along with main project. The main project sanction letter will include sub
projects and respective sub-project numbers.
3.7.3 Sub-projects not sanctioned along with main project, but indicated in SoC may be
sanctioned by the CFA as per Table 11, during the currency of the main project. These sub-
projects shall also be in the same category as of main project and should have Probable Date
of Completion (PDC) at least 3 months before the PDC of the main project. The procedures
for sanction of sub-project shall be as specified in Para 3.7.1 above.
3.7.4 Sub-projects not planned during the project sanction stage can be sanctioned with
recommendation of highest monitoring body and will be sanctioned by the Competent
Financial Authority as per Table 11. The procedures for sanction of sub-projects shall be as
specified in Para 3.7.1 above.

3.7.5 Copies of sub-project sanction letters and subsequent revisions should be

forwarded to DP&C by the issuing office.

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3.7.6 Labs holding sub-projects shall approach the Dte. of Finance and Material
Management (DFMM), DRDO HQ for allotment of Unit Code

Table 11: Competent Authority to Sanction Sub-project After Main Project Sanction*

Cost of sub-project Competent Authority to sanction sub-project

Less than ₹10 Cr. Nodal Lab Director

₹10 Cr.< Cost of sub-project <₹75 Cr. Cluster DG of Nodal Lab

More than ₹ 75 Cr. Secretary, DD R&D

* Levels indicated based on GoI Letter No. DRDO/DFMM/PL/83226/M/01/1976/D(R&D) dated 18

Dec 2019

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CHAPTER 4
PROJECT EXECUTION
The physical activities to achieve the project objectives take place in the execution
phase, which is the manifestation of the planning and pre-project activities. Following
guidelines shall be followed during this phase.

4.1 APPOINTMENT OF PROJECT/PROGRAMME DIRECTORS AND

PROJECT TEAM
4.1.1 Project / Programme Director and the project team shall be appointed to steer the
project. A Programme can have multiple Project Directors at same or different labs. A Project
Director shall be appointed for the sub-project also. The Project Directors of the project / sub-
projects, concerned lab Director and concerned Cluster DG would exercise delegated
financial powers, as amended from time to time, for executing the projects / sub-projects.
4.1.2 The Competent Authorities to appoint the Project / Programme Director is given in
Table 12.

Table 12: Competent Authority to Appoint Project / Programme Director for

Projects & Sub-Projects
Project covered under Appendix ‘A’ of DFP vide DFMM Letter No.
DRDO//PL/83226/M/01/1976/D(R&D) dated 18 Dec 2019

Project CFA Level Authority to Appoint Project / Programme Director

Lab Director Lab Director

Cluster DG/ Cluster DG

Secretary DD (R&D)

RM/FM Secretary DD R&D

Project covered under Appendix ‘B’ of DFP vide DFMM Letter No.
DRDO/DFMM/PL/83226/M/01/1976/ D(R&D) dated 18 Dec 2019

CCS Secretary DD (R&D)

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4.1.3 A Letter of Authority appointing PDs to exercise financial powers in accordance with
the DFP in vogue amended from time to time will be issued by Authority as per Table 12
toLAO / AO(R&D) / CDA (R&D) /PCDA(R&D).The specimen format for appointment of
Project / Programme Director is given at DRDO.DPFM.FF.07 in Handbook of
Supplementary Procedure to DPFM 2021.

4.2 PROJECT REALISATION PLAN AND RESPONSIBILITY MATRIX

4.2.1 The project team should prepare a detailed baseline for the project, which should be
recommended by the first meeting of PMRC and approved by the EB (detailed in subsequent
sections). It should contain detailed Work-Breakdown Structure (WBS), planned schedule of
activities, major milestones, critical path activities, project execution plan and strategies,
responsibility matrix,risk areas with mitigation plan and procurement cases as envisaged
during project sanction stage.
4.2.2 Clarity to work centres for their responsibilities are key to success of the project.
Accordingly, a Responsibility Matrix for different activities of the project needs to be put up
for recommendations of PMRC and approval of EB during its first meeting. Thereafter, as
further details/ changes evolve during project execution, the responsibility matrix should be
updated and made available to the key stakeholders.
4.2.3 It is expected that during the execution of project, due to earlier identified risks and
some unforeseen technical challenges, change in implementation and development strategies
may become essential. Resultant changes in the realisation plan, if any, and its implications
on time and cost should be recorded and reviewed in all subsequent progress review
meetings.

4.3 SUB-PROJECTS
4.3.1 Participating labs will conduct all technical and progress monitoring reviews for the
sub-projects as stipulated for the main projects. The Project Director of the sub-project will
forward status updates and technical review reports to the nodal lab during the main project
reviews and also in the interim as and when sought by the nodal lab.

4.4 AWARD OF WORK PACKAGES, CONSULTANCY CONTRACTS

4.4.1 CFAs for work packages will be as stated for sub-projects in Table 11.

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4.4.2 Funds for work packages and consultancy contracts will be released by Nodal/
participating labs as per the payment terms and conditions laid in the MoU/ Contract.

4.5 DETAILED DESIGN, DESIGN REVIEWS AND CONFIGURATION

FINALISATION
4.5.1 System/Sub-system/Component level design exercise should be undertaken during the
earliest phase of project. The project team may use in-house capabilities andexternal expert
consultations. Configuration details, wherever required, should be finalised in the initial
phase itself. Documentation of the design exercise is very important for records and
continuity and special emphasis on these documents should be placed by the project team.
4.5.2 A documentation team shall be nominated in the SoC for all MM projects and
system level TD projects. This team shall be responsible for preparation of all the documents
required as per the project timelines for different purposes.
4.5.3 The following design reviews are mandatory for all TD and MM projects and should
be with respect to identified milestones for the project. These reviews are optional for S&T
category projects and not required for other category of projects.
4.5.4 Preliminary Design Review (PDR): PDR should be done as a pre-project activity
specifically for MM & TD(S) projects (wherever requirements are firmed up). In all other
cases, it should be done as the first technical activity after the sanction of the project. PDR
should focus on the design constraints, design methodology, test and validation of system and
sub-systems, hardware and software development plan, system interface requirements and
system realization plan. A committee of experts should review the Preliminary Design
Document (PDD). The approved PDD should be the baseline technical document.
4.5.5 Detailed Design Review (DDR): The review would focus on sub-systems level
detailed design. Acceptance of DDR committee report should be the milestone gateway for
manufacturing clearance of first prototype.
4.5.6 Critical Design Review (CDR):Should be carried out based on feedback of initial
functional trials and performance validation trials including Environmental Tests. After CDR
approval, the system with or without design changes can be cleared for manufacturing in
numbers and full-fledged testing. CDR committee may suggest additional tests or retrials for
performance validation.

4.6 DESIGN, DEVELOPMENT AND FABRICATION CONTRACTS

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4.6.1 The core team should initiate procurement cases in accordance with prevailing DFP
and Procurement Manual. Development contracts should be in conformance with
Procurement Manual 2020 as amended from time to time. ‘Standing Committee’ provisions
stated in subsequent sections may be utilized by labs for urgent procurement needs
(Monitoring and Review section in subsequent Chapter).
4.6.2 Interim design iterations and refinements is a continuous process in R&D projects.
The consequent changes in procurement plans due to changes in design approach and
realization plan specified in project SoC and entailing changes in components/ sub-systems/
equipment within the overall cost of the project can be undertaken with the recommendation
of PMRC. The same should be ratified by EB in subsequent review.

4.7 ToT to LSI / DcPP / PA

4.7.1 Preparatory activities for nomination of the LSI/DcPP/PA should be initiated during
pre-project sanction stages. Selection of the DcPP should be in accordance with DISB
guidelines no. DISB/DPP/27656/P-1/Para-72 dated 15 Mar 2019 as amended from time to
time. A formal nomination/ selection of the LSI/ DcPP/ PA may be accorded after project
sanction. ToT to LSI/ DcPP/ PA and Development Partners will be in accordance with the
prevailing ‘DRDO Policy and Procedures for Transfer of Technology’ promulgated by
DIITM, DRDO HQ in Oct 2019 as amended from time to time.

4.8 REALISATION OF SYSTEMS AND INTEGRATION

4.8.1 Realization of sub-systems / components, their testing, validation and integration
should be progressed by the core team. Quality Assurance, Acceptance Test Plans and other
Quality and Reliability documents should be formulated as per the DRDO Quality and
Reliability Policy Guidelines (issued vide letter no. DQR&S/02/9201/M/01 dated 19 August
2020) by Project Teams and approved by Lab R&QA / MSQAA / other designated QA
Agency. E-waste management guidelines by CFEES should be adhered, where applicable.

4.9 TEST AND EVALUATION

4.9.1 Test Plan for internal trials would be prepared by the Project Team and approved
by the Lab R&QA / MSQAA / other designated QA Agency. Development trials on systems
shall be done as per Trial Directives and Trial Methodology of SHQs, where applicable.

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JPMT / PMT shall be associated with trials, where applicable. DQRS, DRDO HQ shall be
involved in test and evaluation activities. DISB, DRDO HQ shall be the nodal Directorate to
coordinate with the concerned SHQ Directorates for conducting trials as per trial directives. .
4.9.2 Trial results shall be reviewed by the JPMT (for AoN cases), PMRC and EB. Way
ahead shall be given by the highest monitoring body.

4.10 ANNUAL AUDITED STATEMENT OF EXPENPENDITURE

4.10.1 Annual Audited Statement of Expenditure duly vetted by the concerned
AO(R&D)s/CDAs/PCDAs preferably be sought at the end of each Financial Year (FY) by
the Nodal/Participating labs as per the format at DRDO.DPFM.FF.08.

4.11 TRANSFER OF A PROJECT FROM NODAL LAB TO ANOTHER LAB

4.11.1 The steps to be followed for transfer of a sanctioned project from one Lab to other
are:
(a) The case will be presented during CCM and EB review. Recommendations of
the EB should be recorded in the minutes.
(b) SoC for project transfer between labs within cluster shall be progressed with
EB recommendations.
(c) Proposals for project transfer between labs of different clusters shall be
presented to the DMC also. Such SoCs will be progressed with EB and DMC
recommendations.
(d) Audited statement of expenditure should be sought from the concerned audit
authorities, till the cut-off date.
(e) A sanction letter would be issued by the CFA stating closure of old project
number and old unit code and allotment of new project number and new unit code.
Project number and unit code of the sub-projects will also be changed.
(f) Transfer of expenditures as per audited statement of expenditure will be done
from old unit code to new unit code.
(g) Project inventory and Inventory records will be transferred to new Lab/Estt.
along with outstanding audit observations.

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(h) All procurement case files should be transferred on as-is-where-is basis. New
lab will be authorized by the CFA to place supply orders for all cases initiated by
the previous lab.
4.11.2 Specimen formats for transfer of a project are given at DRDO.DPFM.FF.18.

4.12 CHANGE OF CATEGORY OF PROJECT

4.12.1 There may be instances where a project need to be initiated pending the completion
of process of AoN / PSQR finalization and quantity commitment from the SHQs. In all such
cases, the project can be initiated in TD(S) category and can be changed to MM category
subsequent to completion of procedural requirements. Change of category of projects shall be
done with the recommendations of the highest monitoring body & approval of CFA with
concurrence of corresponding Financial Advisor.
4.12.2 Specimen formats for change of a project category during project currency is given
at DRDO.DPFM.FF.19.

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CHAPTER 5
PROJECT MONITORING AND REVIEW

5.1 REPORTING OF MILESTONE STATUS AND ACHIEVEMENTS

5.1.1 Project progress reporting should be linked with milestone stages/ Key Performance
Indicators. An indicative reference for TD(S) and MM category projects with assigned
percentage completion at each stage is given in Table 13.

Table 13 :IndicativeProgress Reporting Framework

Percentage
Major Milestone/ Stage Activities
Completion (%)

Cluster Council Approval 1

Peer Review/ 2
PDR in Case of MM and TD(S) Projects
Project Sanction
AoN by DMC 3

Cost Estimation Committee 4

Sanction of the Project 5

Configuration Analysis 7

Configuration Review 8

1st Level Design Configuration Approval 10

Finalization Preliminary Design Review (sub-system Level) 11

Preliminary Design Review (System Level) 13

Approval of Acceptance Test Plan (ATP) 15

Approval of Manufacturing Process Plan 17
(MPP)/ Interface Control Document (ICD)

1st Prototype System Approval of Quality Assurance Plan 19

Realization/ Realisation of working model of sub-systems 22

Integration Approval of sub-systems 25

Integration of sub-systems & its acceptance 28

Realisation of Prototype 30

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Realisation of sub-system hardware for 33

Performance validation
Successful
Qualification testing of sub-systems 37
Performance
Approval for integrated tests 39
Demonstrationof1st
Completion of integrated tests for design 44
System
clearance

1st Successful Technology Demonstration Trial 47

Critical Design Review 50

Selection of Lead System Integrator (LSI)/ 55

Development-cum-Production Partner (DcPP)/
Production Agency (PA)

Start of Development Trials 60

25% Completion of Schedule of Development/ 65
Completion of
Internal Trials
Development/
50% Completion of Schedule of Development/ 70
Internal Trials
Internal Trials

75% Completion of Schedule of Development/ 75

Internal Trials

Completion of Schedule of Development/ 80

Internal Trials

Confirmation of system performance as a part 90

of PSQR Validation Trials from DcPP / LSI /

Completion of PA produced system

Development Completion of MET Trials 95

Acceptance by JPMT / PMT / SHQ based on 100

PSQR Validation Trials

Note - Activities specified in the above table is for reference only and may change as per the
objectives and scope of the projects. It should be a part of the Scope of Project as well as a
part of the Milestones for Review by all Review Committees (AB/ EB/PMRC). The major

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milestone for all the projects shall remain the same, however; intermediate activities (if
deviation required) be aligned to nature of project / systems /subsystems.

5.2 ONLINE MONITORING

5.2.1 Online monitoring of project milestones will be done through DRONA based Project
Management and Information System (PMIS). Access to PMIS will be provided to Lab
Directors and Project Directors for initial one time uploading of the six monthly-technical
milestones and linked financial outlays, to be followed by periodic updating of status/
progress made vis-a-vis each milestone.
5.2.2 Standard Operating Procedures (SOPs) for the users to upload project technical
milestones and for subsequent updates for the purpose of online monitoring of project
progress will be promulgated by DP&C from time to time.
5.2.3 The responsibility of ensuring updated project status on Online Monitoring
System shall be of Project Director. Director (PM), O/o Cluster DG shall ensure updated
status for all projects before scheduling EB reviews and Nodal Lab Director shall ensure the
same before AB reviews respectively. This status shall be reflected in the respective minutes.
5.2.4 For the project proposals under sanction, the details shall be uploaded based on an
interim Project Number, which shall be changed after allocation of Project Number post
sanction of project.
5.2.5 While seeking new project sanctions or revisions under ongoing projects, Lab
Director shall certify in the SoC that above stated details are uploaded on PMIS.

5.3 CO-ORDINATING REVIEWS

5.3.1 Director PM / PD in consultation with Lab Director and O/o Cluster DG should
ensure conduct of monitoring reviews at intervals as stipulated in subsequent sections.
Conduct of progress monitoring reviews at stipulated intervals (as stated in subsequent
sections) will be the responsibility of the Member Secretary.

5.4 PROJECT MONITORING AND REVIEW

5.4.1 For all Programmes / CCS projects / a three-tier monitoring mechanism should be
constituted i.e. ‘Apex Board’, ‘Programme Management Board (PMB)’ and the ‘Project
Management Board (PJMB)’ for periodic monitoring and review of the programmes.

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5.4.2 For Projects under delegated financial power of Finance Minister (FM), Raksha
Mantri (RM), Secretary DD R&D & DG Cluster, the two-tier monitoring mechanism
would be constituted i.e. ’Executive Board (EB)’ and ‘Project Monitoring and Review
Committee (PMRC)’.
5.4.3 For ‘Special Projects Sanctioned by Standing Committee’ the Review mechanism
will be akin to APEX Board under the Chairmanship of secretary DD (R&D) and comprising
members as DG Cluster and Addl FA (R&D). The Chairman may co-opt/invite member/s.
Director Nodal labs will coordinate the meetings. Director P&C may help in conduct of the
meetings / issue of Minutes of meeting.
5.4.4 For Projects under Delegated Financial Power (DFP) of lab Director, PMRC shall
be the highest monitoring body. Projects may adopt additional internal review mechanisms as
required.
5.4.5 For all SHQ AoN accorded Project / Programme, as perChapter IV of DAP 2020
on ‘Procedures for Acquisition of Systems Designed and Developed by DRDO/DPSU/OFB’
will also be used for Monitoring and Review with agenda specified therein. Review by
JPMT as per Chapter IV of DAP will be in addition to AB, PMB/EB, PMRC/PJB
mentioned in this document.
5.4.6 The nomenclatures PMB and PJMB used for CCS Programmes are equivalent to EB
and PMRC respectively in other cases except for delegated financial powers vested with
PMB and PJMB. Constitution of the three-tier monitoring boards is given in the subsequent
Section.

5.5 BRIEFING PAPERS FOR REVIEW MEETINGS AND MINUTES OF

MEETINGS
5.5.1 Briefing papers for the reviews should be provided by the Member Secretary to all
concerned at least a week in advance as per the template available at DRDO.DPFM.FF.09.
5.5.2 Minutes of Meeting (MoM) should be submitted by the Member Secretary within a
week of conduct of the review for approval. The minutes should essentially record
issue/agenda point, deliberation/discussion, proposed way-ahead/action-points/other
decisions, expected date of completion of the action and responsible agencies. Delayed
milestones should be recorded in minutes along with their implication on time, cost and
mitigation plan. Additional requirements and changes in the design with its implication on

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cost and timeline should be specifically mentioned. Specimen template for MoM is given at
DRDO.DPFM.FF.10.

5.6 AGENDA OF THREE-TIER MONITORING COMMITTEES

5.6.1 COMMON ESSENTIAL AGENDA POINTS FOR MONITORING COMMITTEES
 Confirmation of MOM of previous reviews
 Programme overview.
 No. of Reviews by subordinate boards since last review meeting.
 Programme activities since last meeting.
 Action Taken Report for Action points of previous review.
 Review of the six monthly technical & financial milestones, reasons for slippages,
discussion on risks and its mitigation measures, impact on overall project
milestones.
 Achievement vis-a-vis technical and financial milestones.
 Assess reasons for delay and suggest corrective measures.
 Review of procurement issues of respective CFA level, Expenditure status (Spent,
commitments made and in pipeline).
 Financial status including procurement status.
 Decision Points.
- Programme related technical issues
- Issues raised by User
- Issues having Financial implications
- Other relevant issues

5.6.2 APEX BOARD (AB)

 Common essential Agenda points for monitoring committees (refer Para 5.6.1)
 Deliberation on key management issues which have cropped up during execution
of Projects/ Programmes and solutions thereof.
 Discussion on unresolved techno-managerial recommended by EB / JPMT.
 Resolutions of issues with SHQ and other inter-departmental issues.

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 Review and way ahead on the additional requirements of Services/ Changes in

design with implication on cost and timeline.
 Ratification of recommendation made by lower level committees i.eProgramme
Management Board (PMB), Project Management Board (PJMB), Executive Board
(EB) in respect of Project / Programmes cost enhancement, re-allocation of funds
and PDC extension.
 Ratification of recommendation made by the lower committees on project closure.
 Any other point with the approval of Chairman.

5.6.3 EXECUTIVE BOARD (EB) / PROGRAMME MANAGEMENT BOARD (PMB)

 Common essential Agenda points for monitoring committees (refer Para 5.6.1)
 Techno-managerial issues.
 Ratification of the TRL based on Qualifiers and Supporting Documents.
 Review sub-projects.
 Review the Recommendations of JPMT, wherever applicable.
 Recommendations on the additional requirements of SHQ / design changes with
implication on time and cost.
 Discussion on unresolved technical issues by PMRC and related managerial issues
with their proposed solutions.
 Ratification of PMRC recommendation for change in realization planincluding
system/equipments not envisaged in project proposal, project cost enhancement,
re-allocation of funds and PDC extension
 Ratification of PMRC recommendation for closure of projects.
 Any other point with the approval of Chairman.

5.6.4 PROJECT MONITORING and REVIEW COMMITTEE (PMRC) / PROJECT

MANAGEMENT BOARD(PJMB)
 Common essential Agenda points for monitoring committees (refer Para 5.6.1)
 Detailed Schematic/Product Tree (indicating Bought out/BTP/BTS) indicating
status of each module.
 Discussion on unresolved technical issues and their proposed solutions.
 Recommendations on the TRLs based on Qualifiers and Supporting Documents.
 Resolutions of issues internal to Lab.

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 Recommend alternate approach, whenever necessary.

 Recommending proposals for change in realization planincluding
system/equipments not envisaged in project proposal, enhancement of funds, Re-
allocation of funds and PDC extension.
 Recommending proposals for closure of projects.

5.7 COMPOSITION OF PROJECT MONITORING AND REVIEW COMMITTEES

5.7.1 Apex Board (AB)
Secretary, Defence (R&D) Chairman
Secretary Defence (Fin)/ Finance Advisor (Defence Services) Member
Vice Chiefs / CISC / Deputy Chiefs or equivalent of User Services Member
DG (Acquisition) (for AoN Projects only) Member
Cluster DG of Nodal Lab Member
Cluster DGs of participating labs Member
DG (R&M) Member
DG (PC&SI) Member
Addl. FA (R&D) Member
Director, Nodal Lab Member
Directors of participating labs Member
Chairman, JPMT (where nominated) Member
CE, CEMILAC (as applicable) Member
DGQA/AQA (as applicable) Member
Programme Director Member Secretary
Chairman may co-opt/nominate other members as and when necessary.
Periodicity of meeting : Once in Six months

Standing Committee for Apex Board

Secretary, Defence (R&D) Chairman
Cluster DG of Nodal Lab Member
Addl FA (R&D) Member
Director, Nodal Lab Member
Programme Director Member Secretary

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5.7.2 Executive Board (EB) / Programme Management Board (PMB)

Cluster DG of Nodal Lab Chairman
ACNS/ACAS/ACOAS Plans (for AON accorded MM Projects only) Co-Chair
Rep DG (Acquisition) (for AON accorded MM Projects only) Member
Director, Nodal Lab Member
Directors/PDs of participating labs Member
Chairman, JPMT / Rep SHQ (for AoN / MM cases) Member
Director DP&C, DRDO HQ Member
Director DISB, DRDO HQ Member
IFA (R&D), Nodal cluster Member
Director (PM) of Cluster DG Member
Director QR&S, DRDO HQ (MM cases) Member
Rep of CEMILAC (as applicable) Member
QA Agency (as required) Member
Programme Director Member Secretary
Chairman may co-opt/nominate other members as and when necessary.

Periodicity of meeting : Once in six months

Standing Committee for PMB

Cluster DG of Nodal Lab Chairman
Director, Nodal Lab Member
IFA (R&D) Member
Programme Director Member Secretary

5.7.3 Project Monitoring & Review Committee (PMRC) / Project Management Board (PJMB)
Director, Nodal Lab Chairman
Subject experts from R&D Centers/Academia/other DRDO Labs (as required) Member
Director (PM) of Cluster DG Member
DFA/Dy. IFA/Jt. IFA/Director (Fin) Member
Reps of participating labs Member
Programme Director Member

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Head PMT (for AoN / MM Projects) / Rep SHQ (as applicable) Member
Rep of CEMILAC (as applicable) Member
Rep of DGQA/AQA (as required) Member
Lab QA/IV&V Member
Project Director Member Secretary
Chairman may co-opt/nominate other members as and when necessary.

Periodicity of meeting : Once in three months

Standing Committee for PJB
Nodal Lab Director/ Work Centre Director Chairman
DFA/Dy. IFA/Jt. IFA/Director (Fin)/Rep of IFA (R&D) Member
Project Director Member Secretary

5.7.4 Role and Functions of Standing Committees for AB, PMB & PJB
The role of Standing Committee for demand approvals, financial sanctions, PDC extensions
and other financial approvals will be as per DFP of DRDO and Procurement Manual 2020 as
amended from time to time.
Standing Committee is not applicable for EB and PMRC.

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CHAPTER 6
PROJECT SCOPE, DURATION AND COST REVISION

All efforts shall be made by the Project Team to complete the project within the
allotted time and cost. However, due to the unforeseen technological challenges and other
issues, duration of the project and / or its cost may require changes. During the execution of
projects, re-allocation of funds under the same major head may be required. These corrigenda
are to be considered as exceptions and need to be justified for the reason for changes,
proposed way-ahead for completion of balance activities, risk mitigation strategies etc.

6.1 SCOPE REVISION, PDC EXTENSION, RE-ALLOCATION OF FUNDS &

COST REVISIONS
6.1.1 Extension of the project duration, changes in the project cost and re-allocation of
funds, for reasons specified, shall be recommended by the highest monitoring body.
6.1.2 Extension in the Project duration (PDC) from the originally sanctioned duration shall
be approved by the CFA with the concurrence of respective Financial Adviser as following:
(a) All PDC extensions up to 2 times with cumulative period of extension not
exceeding 50% of the original sanctioned PDC extension cases will be approved by
the concerned CFAs.
(b) Changes in the original sanction cost without changes in the CFA shall be
approved by the concerned CFA as per Table No. 09.
6.1.3 PDC extension for 3rd time onwards or Extension in PDC beyond 50% of the original
sanctioned period shall be presented to DMC. Based on the recommendations of the DMC,
the changes in the duration of the project and / or its cost shall be sanctioned by the
corresponding CFA with the concurrence of respective Financial Adviser.
6.1.4 In respect of Projects/ Programmes sanctioned by Raksha Mantri, the case for
extension in PDC shall be dealt with as per provisions of para 1.3 of DFP 2019, as amended
from time to time.
6.1.5 An SoC has to be initiated by the nodal lab as per DRDO.DPFM.FF.11. Checklist at
DRDO.DPFM.CL.02 may be utilized by the O/o Cluster DGs while progressing PDC
extension cases.

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6.1.6 The guidelines stipulated at para 1.2 of DFP 2019, as amended from time to time,
will be followed for re-allocation/ enhancement/ reduction of funds of a sanctioned Project /
Programme. Re-allocation of funds and cost revision proposals should be submitted as per
DRDO.DPFM.FF.12 and the checklist at DRDO.DPFM.CL.03 may be utilized by the office
of Cluster DGs while progressing the cases. Cost revision proposals resulting in approval of
higher CFA should be supported by cost estimations duly vetted by CEC.
6.1.7 All PDC and cost revision sanctions, issued by designated CFA, will be assigned
fresh “Unique Sanction Code”. Specimen Govt sanction letters for PDC extension and cost
revisions are at DRDO.DPFM.FF.15 and DRDO.DPFM.FF.16 respectively.

6.2 SUB-PROJECTS REVISIONS

6.2.1 Scope revision, PDC extensions / cost revisions and re-allocation of funds under sub-
projects will be sanctioned by the CFAs stated in Table 11, with the recommendations of
highest monitoring body.

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CHAPTER 7
PROJECT/ PROGRAMME COMPLETION AND CLOSURE

Closure of project has to be initiated by the nodal lab upon completion of sanctioned PDC or
on project meeting all its stated objectives, whichever is earlier. Upon completionof the Project
PDC, no expenditure should be committed. All items/stores must be received in the Lab before
end of project PDC. However, payment of committed stores can be released beyond PDC. Like
project sanction, a case for project closure has to be moved for approval of CFA.

7.1 PROJECT CLOSURE CATEGORIES

7.1.1 A sanctioned DRDO project may be closed under following categories. Detailed procedures
for closure of projects under these categories are given at subsequent sections.
(a) Successfully Completed Project. Project closure upon its meeting all specified
objectives within the original/ revised cost and duration approved by the CFA.
(b) Projects Completed with Partial Success. Projects with multiple objectives may
result in successful completion of certain objectives and partial accomplishment of balance
objectives. Such projects, where part of objectives could not be completely met, would be
considered as partial success.
(c) Staged Closed Project. A sanctioned project can be stage closed, where
considerable effort and funds have been spent and partial success has been achieved, yet
concrete results could not be achieved. Stage closure is resorted to only in extra-ordinary
circumstances e.g. when faced with insurmountable scientific or technical challenges,
obsolescence, changes in specifications/requirements causing major changes in cost and
timelines. Labs should amply justify theadvantage of stage closing a project rather than
pursuing it further and also provide utilization plan of assets/ hardware and benefits accrued
under the project.
(d) Cancelled Project. A sanctioned project can be cancelled, where continuing the
project is not considered viable due to changed requirements / technology or due to
administrative reasons. In all such cases, expenditure of <5% of the sanctioned project cost
should have been incurred.
7.1.2 For closing a project under above categories, SoC has to be prepared for CFA approval as
per format at DRDO.DPFM.FF.13for Projects completed with partial success, stage closure projects

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and cancelled projects and as per DRDO.DPFM.FF.14 for projects completed successfully along
with way forward.

7.2 RECOMMENDATION OF HIGHEST MONITORING BODY

7.2.1 The highest monitoring body shall recommend the closure of the project. Approval of DMC
shall be required for Projects completed with partial success, Stage-closing and cancelling a project.

7.3 PROJECT SUCCESS EVALUATION

7.3.1 Once the last task is completed, the project has to be evaluated for measuring achieved
outcome vis-à-vis defined success criteria, i.e the qualifiers and support documents defined in
Table 1. Evaluation method is given below.
(a) Success evaluation of SHQAoN based MM projects will be in accordance with the
provisions under Chapter IV of DAP 2020.
(b) For other MM, TD(S) and UT projects, PSQR validation trial outcome will be
regarded as success determinant by the highest monitoring body while recommending
project closure.
(c) For TD(T), S&T, IF and PS projects, an Independent DRDO Technical
Committee for Evaluation of Project Successdrawn from outside project
(DRDO.DPFM.GL.10) will evaluate project outcome and certify successful completion.

7.4 TECHNICAL CLOSURE REPORT

7.4.1 A detailed Technical Closure Report (DRDO.DPFM.GL.11) for all completed Projects /
Programmes should be prepared by the documentation team/project team within 06 months of
project completion/ expiry of PDC. Participating labs and agencies should submit the report to
the nodal lab for respective sub-projects and work packageswithin 01 month of expiry of
respective PDCs. The report should be endorsed by Project Director and Lab Director for all
projects and accepted by Cluster DG.
7.4.2 Technical Closure Report is an in-house document. It should essentially contain the
following –

 Complete project history

 Details of objectives envisaged vis-à-vis achieved/Shortfall

 Achievements of the project

 Detailed justification/reasons for shortfalls

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 References to design documents/technical reports evolved during the project

execution

 TRL assessment reports

 Test results

 Lessons Learnt

 Proposed utilization of developed technologies

 Suggestions for Way Forward

7.4.3 A copy each of the technical closure report should to be retained by the lab and the O/o
Cluster DG for future reference. A hard copy along with soft copy of the report should be
forwarded to DP&C, DRDO HQ for archival. The achievements/ shortfalls, references to technical
reports evolved during the project, their location of archival/repository should be stated in the
Technical Closure report. All Technical closure reports and supporting documentation should be
stored in central repository of the Nodal Lab and O/o Cluster DG for future reference.

7.5 ADMINISTRATIVE CLOSURE REPORT

7.5.1 Administrative closure report of the project should be prepared by the PD and
Documentation/Project team. The report duly vetted by the Project Director and Lab Director and
accepted by the Cluster DG should be forwarded for approval of CFA within12 months of expiry
of PDC. The report serves the purpose of audit authorities. Participating labs and agencies should
submit the admin closure report to the nodal lab for respective sub-projects and work packages
within 06 month of expiry of respective PDCs.
7.5.2 Audit observations, not settled, may continue to be active till settled, however,
Administrative closure should not be delayed only on account of this.
7.5.3 Administrative Closure report should essentially contain -

 Project attributes

 Brief summary of technical achievements (objective envisaged vis-à-vis achieved)

 Certificate from the Material Management/ Store Sections stating no outstanding

commitments of any kind under the project and completion of all payments i.e. no
outstanding commitments, no live supply orders or contracts, not even pertaining to
warranty which sometimes extends beyond the project PDC.

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 No expenditure should be committed in the project after expiry of the PDC. The items /
stores must be received in the lab before the expiry date of PDC. However payment of
committed stores can be released beyond PDC i.e. within 06 months of expiry of PDC.

 Statement of expenditure vetted by concerned CDA (R&D)/ LAO.

 Minutes of the highest monitoring body recommending closure of the project.

7.6 COMPETENT AUTHORITY FOR ADMINISTRATIVE CLOSURE OF

PROJECT/PROGRAMME
7.6.1 Successfully Completed projects, with all specified objectives achieved within approved
cost and timelines, which have been recommended for closure by the highest monitoring body, will
be closed with the approval of Secretary, DDR&D or CFA whichever is lower, with concurrence of
designated Financial Advisor.
7.6.2 Projects completed with partial success, Stage Closed & Cancelled projects, where
project objectives are not met,labs should identify reasons for not achieving the pre-defined
objectives. These should be reviewed by a committee constituted by DG Cluster. Findings of the
committee should be submitted to the highest monitoring committee, which will recommend
closure of the project with further way ahead. Approval of DMC shall be obtained before
processing such projects for closure. Thereafter, case should be moved for approval of CFA for
formal closure with the concurrence of designated Financial Advisor.
7.6.3 Routing of closure case file will be the same as stated at Chapter 3. Upon accord of
approval for Project closure, a sanction letter will be issued by the designated office
(DRDO.DPFM.FF.17).
7.6.4 CFA for administrative closure of sub-projects will be as stated at Table 11 with the
recommendations of Nodal Lab Director and concurrence of designated Financial Advisor.
Participating Labs will submit the Administrative Closure Letter to Nodal Lab.
7.6.5 Closure of Work Packages. Statement of expenditure duly vetted by CFA of organization
executing the work package should be annexed with the closure report. CFA for Work package
closure will be as stated for sub-projects at Table 11.

7.7 WAY FORWARD AFTER PROJECT CLOSURE

7.7.1 Way forward forSHQAoN based MM projects shall be as per the guidelines at Chapter IV
of DAP-2020 as amended from time to time. Nodal labs should forward the proposal for AoN /

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Induction / Production / User for MM, TD(S) Projects which have completed PSQR validation
trials, through Cluster DG and DG (PC&SI) to SHQ.
7.7.2 The proposal shall be moved by the nodal lab through the cluster DG and DG (PC&SI) for
finalization of PSQR and AoN for TD(S) category of projects, if the same were not provided
earlier. Subsequent category of project, if required, shall be decided by the Cluster DG based on
agreed way ahead with the SHQ.
7.7.3 TD (T) Projects. If the technology is matured for Mission Mode, file should be moved to
Services HQ based on the output of TD(T) to intimate about the advanced technology maturity
achieved through the project and to enable Service to formulated draft QRs for developing product
based on their requirement. If TD(T) results Matured Product/Process/Methodology be informed to
DRDO labs/Concerned agencies for use in future projects/related activities, the same be informed to
DRDO labs.
7.7.4 In case of S&T projects, probable use should be identified. A brochure about the research
may be created or a product should be made from the research outcome. Based on the inputs,
DRDO labs may take a TD project. A next level/next generation of the S&T project may also be
undertaken.
7.7.5 IF Projects should be put to maximum utilization for in-house requirements within DRDO.
The facilities may also be extended for utilization by other Govt. and private agencies, through
provisions under Deposit Works for revenue generation.
7.7.6 PS Projects. Systems/ sub-systems up gradations under the PS projects should be put to use
in subsequent projects.

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ABBREVIATIONS
ACAS Assistant Chief of Air Staff
ACE Armaments & Combat Engineering
ACNS Assistant Chief of Naval Staff
AIP Acceptance-In-Principle
ACoAS Assistant Chief of Army Staff
AO (R&D) Accounts Office (R&D)
AoN Acceptance of Necessity
ATP Acceptance Test Procedure
BARC Bhabha Atomic Research Centre
BTS Build to Specification
CAPSI Contract for Acquisition of Professional Services
CARS Contract for Acquiring Research Services
CCM Cluster Council Meeting
CCS Cabinet Committee on Security
CDA Controller of Defence Accounts
CDR Critical Design Review
CEC Cost Estimation Committee
CFA Competent Financial Authority
CGDA Controller General of Defence Accounts
CNC Cost Negotiation Committee
DAE Department of Atomic Energy
DAP Defence Acquisition Procedure
DCAS Deputy Chief of Air Staff
DCNS Deputy Chief of Naval Staff
DCoAS Deputy Chief of Army Staff
DcPP Development cum Production Partners
DDR Detailed Design Review
DFMM Dte. of Finance and Material Management
DFP Delegation of Financial Powers

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D-FYP DRDO Five Year Plan

DG Director General
DGL Draft Govt Letter
DG (PC&SI) Director General (Production Coordination & Service Interaction)
DG(R&M) Director General (Resource and Management)
DHRD Directorate of Human Resource Development
DIITM Directorate of Industry Interface & Technology Management
DISB Directorate of Interaction with Services for Business
D-LTTPP DRDO Long Term Technology Perspective Plan
DMC DRDO Management Council
DP Development Partner
DP&C Directorate of Planning & Coordination
DPFM Directives for Project Formulation and Management
DD R&D Department of Defence Research & Development
DQR&S Dte. Of Quality Reliability &Safety
DRDO Defence Research & Development Organisation
DRONA DRDO Rapid Online Network Access
D-RdMAP Roadmap of DRDO
DST Department of Science & Technology
DSTA Dte. of Systems and Technology Analysis
D-ViDOC DRDO Vision Document
RDR Revenue Debt Remittance
EB Executive Board
EoI Expression of Interest
FADS Finance Advisor Defence Services
FE Foreign Exchange
FERV Foreign Exchange Rate Variation
FIM Free Issue Material
FM Finance Minister
FOL Fuel, Oil &Lubricants

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FY Financial Year
GoI Govt of India
GS General Staff
GSQR General Staff Qualitative Requirement
HQ Head Quarters
HR Human Resource
IC International Cooperation
ICD Interface Control Document
IDDM Indigenous Design Development and Manufacturing
IDS Integrated Defence Staff
IDST Institute of Defence Scientists and Technologists
IF Infrastructure Facility
IGA Inter Government Agreement
ISRO Indian Space Research Organization
IV&V Independent Verification and Validation
JPMT Joint Project Monitoring Team
LAO Local audit Officer
LPP Last Purchase Price
LSI Lead System Integrator
LSP Limited Series Production
LTIPP Long Term Integrated Perspective Plan
LTTPP Long Term Technology Perspective Plan
MM Mission Mode
MoD Ministry of Defence
MoM Minutes of Meeting
MoU Memorandum of Understanding
MPP Manufacturing Process Plan
MSS Missiles & Strategic Systems
MSQAA Missile System Quality Assurance Agency

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NS&M Naval Systems & Materials

PA Production Agency
PCDA Principal Controller of Defence Accounts
PDC Probable Date of Completion
PDD Preliminary Design Document
PDR Preliminary Design Review
PEP Project Execution Plan
PERT Project Evaluation and Review Technique
PJMB Project Management Board
PM Project Monitoring
PMB Programme Management Board
PMIS Project Management Information System
PMRC Project Monitoring and Review Committee
PMT Project Monitoring Team
PRC Peer Review Committee
PRI Project Readiness Index
PS Product Support
PSQR Preliminary Staff Qualitative Requirements
QA Quality Assurance
QAP Quality Assurance Plan
QR Qualitative Requirement
R&D Research & Development
R&M Resource & Management
R&QA Reliability & Quality Assurance
RE Revised Estimate
RFP Request for proposal
RM Raksha Mantri
S&T Science & Technology
SDD System Definition Document
SHQ Services Head Quarters

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SoC Statement of Case

SOP Standard Operating Procedure
SoW Scope of Work
S&T Science & Technology
S&T(B) Science & Technology (Basic)
S&T(T) Science & Technology (Technology)
SWOT Strength Weakness Opportunity & Threat
TD Technology Demonstration
TD (T) Technology Demonstration (Technology Level)
TD (S) Technology Demonstration (System Level)
TRA Technology Readiness Assessment
TRL Technology Readiness Level
ToT Transfer of Technology
UATT User Assisted Technical Trials
USC Unique Sanction Code
US(R&D) Under Secretary (Research & Development)
UT User Trials
VCAS Vice Chief of Air Staff
VCNS Vice Chief of Naval Staff
VCoAS Vice Chief of Army Staff
WBS Work Breakdown Structure

Dte of Planning & Coordination (DP&C), DRDO HQs, Rajaji Marg, New Delhi – 110011 Page 60
 Directives for Project Formulation and Management in DRDO (DPFM 2021)

The ‘HANDBOOK OF SUPPLEMENTARY PROCEDURES TO DPFM 2021’ shall be referred in

conjunction with DPFM 2021 for Supplementary Procedures, Forms, Formats and Checklist

Dte of Planning & Coordination (DP&C), DRDO HQs, Rajaji Marg, New Delhi – 110011 Page 61